(Archive photo)
International airlines doing business in South Africa no longer have to meet black economic empowerment requirements (SEB) to obtain or renew international air service licences.
This follows after Sakeliga received a favorable ruling in the High Court in Pretoria on Friday, in which the court ruled that the International Airline Licensing Council (IASC) acted unlawfully by requiring BEE compliance and other race-based criteria when assessing license applications.
According to Sakeliga, the judgment confirms that state organs may not impose empowerment requirements in licensing processes if the legislation that regulates them does not expressly provide for it.
The court found that the IASC may only apply the criteria contained in the International Airlines Act and applicable regulations. This includes, among other things, requirements regarding operating capacity, safety standards, residency and control of businesses.
The ruling means that international providers of passenger, cargo and other air services can henceforth apply for licenses and renew existing licenses without BEE requirements.
Long standing dispute
According to Sakeliga, the IASC has been pressuring international airline operators to comply with BEE requirements since at least 2023, despite the fact that the International Airlines Act does not grant the board any such power.
Maroela Media earlier reported that Sakeliga had taken legal action against the council after the organization obtained documents which allegedly showed that the IASC required BEE certificates and transformation commitments from international operators.
According to Sakeliga, international airlines, foreign embassies and other industry players have already objected to the requirements for years because they could discourage the expansion of airline services to South Africa.
At the time, the organization warned that the policy could limit the availability of international shipping lines, ultimately leading to fewer choices and higher costs for passengers and cargo carriers.
A photo of an Emirates aircraft for illustration purposes only. (Photo: Emirates / X).
Now focus on Acsa
Although Sakeliga describes the ruling as an important victory for the aviation industry, he says pressure over race-based requirements continues in other parts of the sector.
The organization is currently investigating complaints against the Airports Company (ACSA) over allegations that BEE participation is increasingly being made a condition for renting office space, aircraft hangars and other facilities at airports.
Sakeliga says the ruling also sends a message to international companies that regulatory requirements that are not authorized by law can be successfully challenged in the courts.
“The court order confirms that licensing decisions must be made within the provisions of the law and not on the basis of additional requirements that are not prescribed by law.”