South Africa: PE Fund Harith Moves to Buy South African Airline Flysafair

Harith General Partners plans to acquire FlySafair, South Africa's largest domestic airline, as the private equity firm expands its transport investments across the continent.

The transaction is at an advanced stage and subject to approval by competition authorities and aviation regulators, Harith Chairman Tshepo Mahloele said. The deal is expected to close in the fourth quarter and will be executed through a special purpose vehicle, Harith Aviation. The purchase price was not disclosed.

FlySafair, founded in 2014, holds about 67% of domestic seat capacity in South Africa and operates a fleet of more than 30 aircraft. Current shareholders, including Ireland-based ASL Aviation Holdings, will exit the business. The airline's management team will remain in place.

The acquisition follows Harith's failed attempt to buy a majority stake in South African Airways in 2024. Harith manages about $3 billion in assets and has existing transport holdings that include Lanseria International Airport and rail operator Traxtion.

Harith said the investment reflects confidence in FlySafair's operating model and supports its strategy to build an integrated transport network across Africa.

Key Takeaways

The FlySafair deal resolves long-standing ownership concerns around South Africa's foreign airline limits. Regulations cap foreign ownership at 25%, a rule that drew scrutiny to FlySafair's structure under ASL Aviation Holdings. By moving FlySafair into full local ownership, Harith removes regulatory risk and aligns the airline with national aviation policy. That clarity matters as regulators increase enforcement and competitors challenge market dominance. The transaction also signals growing interest from African infrastructure investors in aviation assets that generate steady cash flow. Budget airlines benefit from high utilization, simple fleets, and strong domestic demand, even in slow growth economies. For Harith, the deal fits a broader strategy to link airports, rail, and airlines into one system. For the market, it shows that private capital is stepping in where state-led airline strategies have struggled.

Read the original article on Daba Finance.