Rival airline blocks Mahloele’s FlySafair takeover bid today

THE NEWS: CemAir has asked South Africa’s Competition Tribunal to block Harith Aviation’s proposed purchase of FlySafair, arguing that the state pension fund’s holdings in both parties would give the merged group an unfair advantage.

DETAILS:

• Harith Aviation is owned by Tshepo Mahloele.
• FlySafair is South Africa’s largest domestic carrier.
• The state pension fund holds equity stakes in both Harith Aviation and FlySafair, creating a conflict of interest.
• Advocate Dwight Snyman represented privately owned CemAir at the hearing in Johannesburg on Monday.

WHY IT MATTERS: The decision could reshape competition in South Africa’s domestic airline market, preventing a potentially dominant player and preserving market access for carriers such as CemAir.

FAQ

Which airline filed the challenge against the FlySafair acquisition?
CemAir, a privately owned South African carrier, lodged the objection at the Competition Tribunal, seeking to stop Harith Aviation’s takeover of FlySafair. The airline argued the deal would give the merged entity an unfair edge because the state pension fund is invested in both companies.

What conflict of interest does CemAir cite in its objection?
CemAir says the state pension fund holds equity in both Harith Aviation and FlySafair, meaning the merged group would benefit from shared financing and could offer terms that rival airlines cannot match, undermining fair competition in the domestic market overall in South Africa.

When and where was the tribunal hearing held?
The hearing took place on Monday in Johannesburg, where Advocate Dwight Snyman appeared on behalf of CemAir at the Competition Tribunal hearing in Johannesburg on Monday. The tribunal considered CemAir’s request to block Harith Aviation’s acquisition of FlySafair, citing concerns over the state pension fund’s dual ownership.

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