Harith strikes FlySafair deal two years after SAA talks collapsed

Harith General Partners, a Pan-African infrastructure investor with over $3 billion in assets under management, has agreed to acquire FlySafair, South Africa’s largest domestic airline, marking a decisive return to aviation two years after its bid for South African Airways collapsed.

The transaction, which remains subject to regulatory approvals, will see Harith take full control of FlySafair through its aviation unit, Harith Aviation. Chair Tshepo Mahloele said the deal is expected to close by the fourth quarter, pending clearance from competition authorities and two aviation licensing bodies.

“Harith and its affiliates have entered into a sale and purchase agreement to acquire FlySafair, one of South Africa’s most successful and fastest-growing airlines,” Mahloele said. The airline will account for about 15 percent of Harith’s portfolio and will be financed through a combination of equity and debt. He declined to disclose the purchase price.

FlySafair navigates control and compliance

FlySafair, which controls over 60 percent of South Africa’s domestic seat capacity, is under regulatory pressure over its ownership structure. In 2024, the Domestic Air Services Council said the airline breached local ownership rules after trusts and companies held 75 percent of its voting rights, following a complaint from rival carrier Lift last year.

The airline was given roughly a year to address the issue or risk losing its operating licence. While the Harith transaction could help resolve the matter, FlySafair still needs to complete the required regulatory process, chief marketing officer Kirby Gordon said.

Harith wins Safair following earlier setbacks

Founded in 2006, Harith is marking nearly two decades as a long-term investor in African infrastructure. The Pan-African infrastructure investor now oversees more than $3 billion in assets, with investments spanning energy, transport, logistics and connectivity. It also holds a stake in Lanseria International Airport, northwest of Johannesburg.

For Harith, the acquisition closes a chapter that has been open for several years. The firm previously pursued a stake in South African Airways, but talks with the government ended after three years over disagreements on control and pricing. Harith also reviewed Comair, the former operator of British Airways flights in South Africa, before the airline collapsed in 2022.

The deal will also trigger a restructuring within ASL Aviation Group, which currently has an indirect stake in Safair Operations, FlySafair’s parent. Dublin-based ASL Aviation Holdings is owned by London private equity firm Star Capital Partners. Upon completion, Harith will take full ownership of Safair Operations, keeping FlySafair’s leadership and operations while providing long-term capital to support affordability, reliability and network growth.