South Africa's largest airline, FlySafair, has been given a one-year ultimatum to reduce its foreign shareholding to comply with the country's ownership laws, or risk having its license suspended. The airline, which controls 60% of the domestic market and carries around 30,000 passengers daily, must ensure that at least 75% of its voting rights are held by South African citizens within the next 12 months.

The ruling comes after a complaint by domestic carrier Lift, owned by Global Airways Operations, which led to an investigation by the Domestic Air Services Council. In December, the council determined that FlySafair does not comply with the local ownership regulations, prompting the airline to submit a term sheet detailing its milestones and compliance plan within 14 days, along with monthly progress updates to the council.

According to the law, foreign entities or non-citizen entities may invest in an airline, but they cannot collectively control more than 25% of the voting rights. If FlySafair fails to meet the deadline, it will be required to appear before the Domestic Air Services Council to explain why its license should not be revoked. The airline's failure to comply could have significant consequences for the country's aviation sector, which has already faced significant challenges in recent years, including the prolonged bankruptcy proceedings and downsizing of South African Airways, the closure of state-owned Mango, and the collapse of Comair Ltd. in 2022.

The potential grounding of FlySafair could leave hundreds of thousands of people stranded, highlighting the importance of the airline's compliance with the ownership laws. The airline's fleet of 34 aircraft is a significant contributor to the country's aviation sector, and its failure to comply could have far-reaching consequences for the industry as a whole.

Industry experts are closely watching the developments, as the outcome could have implications for the country's aviation sector and the broader economy. The South African government has been working to revitalize the sector, which has faced significant challenges in recent years. The fate of FlySafair will be closely monitored, as it navigates the complex regulatory landscape to ensure its compliance with the ownership laws.

In conclusion, the one-year ultimatum given to FlySafair to comply with the ownership laws is a significant development in the country's aviation sector. The airline's ability to meet the deadline will have significant implications for the industry, and the broader economy. As the situation unfolds, it remains to be seen how FlySafair will navigate the complex regulatory landscape to ensure its compliance and avoid the risk of license suspension.