FlySafair strike worsens with more flight cancellations expected
The dispute is centred around a wage increase, but also working conditions and hours.
The strike caused major disruptions across and delays across South Africa on Monday, with many people expecting to travel home at the conclusion of the winter school holidays.
Speaking to Stephen Grootes on The Money Show, aviation expert Guy Leitch believes it's likely to be a protracted strike action.
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The Citizen
12 hours ago
- The Citizen
FlySafair under fire for offshore payouts amid staff wage freezes
Audited records reveal FlySafair transferred millions abroad while denying workers cost-of-living increases. Amid a pilot strike due to protracted wage negotiations and along with domestic and international licensing compliance deadlines, it is now alleged FlySafair, South Africa's only budget air carrier, transferred substantial cash to its shareholders in Ireland. A source said more than R1.31 billion was transferred abroad at the tail-end of the Covid pandemic, during a time when FlySafair reportedly told employees it could not afford basic cost-of-living salary increases. The allegations are supported by the audited financial statements of Safair Aviation (Ireland) DAC, a holding company with no employees and minimal expenses, which reports to parent company ASL Aviation Holdings. FlySafair reportedly transferred over R1.3bn offshore According to the statements, Safair Aviation (Ireland) DAC received $54.5 million (about R956 million) in 2022, and a further $20.3 million in early 2023, from its South African subsidiary, Safair Holdings (Pty) Limited – the parent company of FlySafair. In total, over $74.8 million was transferred abroad in just over a year. FlySafair did not respond to requests for financial data covering earlier or later periods. ALSO READ: FlySafair cancels more than 20 flights, offers refunds as pilots' strike continues [VIDEO] 'This is not just executive hypocrisy; it is a textbook case of pandemic profiteering,' the source said. 'Employees were told to sacrifice because the company was apparently struggling, yet foreign shareholders were enriched with sums that dwarf what would have been needed to treat staff fairly.' At the time the funds were expatriated, pilots and other staff faced wage freezes and reduced benefits. Pilots, staff faced wage freezes Relating the cash exit, another source said that a 10% salary increase for pilots would, in contrast, have cost about R45 million a year. 'That is less than 4% of what was sent offshore in one financial period. There was no real inability to pay, just a decision to prioritise foreign shareholders over the people who keep the airline running,' said the source. Earlier this year, FlySafair came under fire after questions about its ownership structure and control led to a sanction by the Domestic and International Air Licensing Councils. ALSO READ: Here's how much FlySafair pilots are earning as increase offer rejected It was found the airline was controlled by its Irish parent and thus in violation of the law. Requirements in South Africa demand that 75% control of an airline remains in local hands, while the balance may be held internationally. Aviation attorney and private pilot Emile Myburgh said, despite allegations from the source, this is not directly a profit issue, but it raises other questions. Not directly a profit issue 'It certainly raises questions when significant profits go offshore. The fact that such significant sums go abroad is at least a red flag,' Myburgh said. FlySafair has long argued that its ownership meets the legal thresholds, but Myburgh said regulators look beyond the paperwork. 'The law looks at the de facto, real situation,' he said. ALSO READ: FlySafair pilots down tools, travellers warned of delays and cancellations 'It doesn't matter how you structure the 75% South African shareholding. If the tests laid down by the Air Services Licensing Act and Companies Act show that control lies with a non-South African resident, then it doesn't matter what the de jure situation is.' Myburgh said South African aviation law does not tolerate simulation. 'Even if the airline shows 75% local shareholding on paper, if the 25% foreign shareholder effectively controls the airline through voting rights or board appointments, then the airline is in breach of the Act,' he said. Near all of FlySafair controlled outside SA's borders The Citizen previously reported that near all of FlySafair is controlled outside South Africa's borders. The department of transport confirmed the carrier has appealed the domestic ruling but not the international sanction. FlySafair has about six months left to correct its control structures. Businessman Robert Gumede was purportedly approached to invest in the company but, according to sources, the deal fell flat. Gumede's office did not respond to questions from The Citizen at the time of publication. ALSO READ: Pilots at this airline may strike starting next week A department of transport spokesperson responded to questions about the dividend export, FlySafair's licensing status and progress of same. 'These matters are part of the agenda to be discussed in the upcoming meetings of both councils. The outcomes of the meetings will be made available in the next coming two to three weeks.' Myburgh said current wage negotiations between FlySafair's pilot body and the company could be impacted by the offshore dividend evidence. Wage negotiation could be impacted by offshore dividend evidence 'Huge dividends being paid to shareholders while employees are told to take the financial brunt of the risk has often been used, successfully, against employers who plead poverty while living the good life during wage negotiations,' he said. FlySafair did not acknowledge or respond to questions from The Citizen. The carrier failed to respond to questions over the large dividends paid to its parent via a third party, how it justified these in the light of imposing wage austerity, or provided any additional annual financial statements that showed or didn't show similar activity in other years. ALSO READ: Planning to Fly? Acsa warns of flight delays at OR Tambo International Airport The airline also avoided responding to questions about local investment, shareholding, the status of acquiring a B-BBEE partner and licensing council sanctions.
Eyewitness News
14 hours ago
- Eyewitness News
FTSE/JSE All Share Index achieves historic 100,000-point milestone
Rafiq Wagiet 23 July 2025 | 17:14 The Money Show Stephen Grootes Johannesburg Stock Exchange (JSE) Picture: Pixabay Stephen Grootes interviews Leila Fourie, CEO of the JSE, to unpack the significance of the all share index breaking through the historic 100,000-point mark. Listen to the interview in the audio player below. The Johannesburg Stock Exchange (JSE) reached a major milestone on Wednesday, with the FTSE/JSE All Share Index (ALSI) hitting 100,000 points, 1,000 times its starting level of 100 points in January 1960. Over the past 65 years, the ALSI has delivered annualised returns exceeding 11%, despite a very topsy-turvy economy, withstanding the global economic crisis in the mid-2000's, as well as the impacted on the Covid-19 pandemic. The FTSE/JSE All Share Index (ALSI) began its journey in 1960 at just 100 points. Over the decades, it has weathered global shocks and economic shifts and has been bolstered by commodity booms and resilient corporate earnings, steadily climbing to close at a historic 100,180… — JSE (@JSE_Group) July 23, 2025 Between 2020-2025, the index rebounded strongly from the lows of the pandemic, largely driven by commodity booms in gold and platinum, resilient corporate earnings and improved investor sentiment. Key sectors like mining, banking and technology fueled gains, while structural reforms and fiscal stability underpinned the JSE's rise as a gateway to African markets. Speaking to Stephen Grootes on The Money Show, Leila Fourie, CEO of the JSE says this feat reflects index's resilience and its role as a barometer of South Africa's economic potential. "It really is an important psychological point, and if you look at the growth trajectory over the past couple of decades. We started this index with 100 points in 1960, and over the last 65 years its delivered returns of about 11%. - Leila Fourie, CEO - JSE "...it comes a year after the GNU was really demonstrates a very material upswing." - Leila Fourie, CEO - JSE "...we started in a mining field, in a tent. Some of the biggest drivers of our economy was mining, which retracted a little bit, and now mining is indeed some of the big drivers in our current 100,000-point mark. - Leila Fourie, CEO - JSE Scroll to the top of the article to listen to the full interview.
The Citizen
a day ago
- The Citizen
FlySafair responds to pilot strike: majority of flights operating, apologises to affected customers
The strike stems from a pay dispute between FlySafair and Solidarity, the union representing a portion of its pilots. FlySafair confirms that while most flights are operating as scheduled, approximately 12% of services have been cancelled on Monday 21 July, due to pilots withdrawing their availability from flights that had previously been confirmed late Sunday night. All affected customers were notified via SMS using the contact details provided at booking. Customers are encouraged to check the Travel Updates page on for the latest information. Airport teams remain on standby to assist with rebooking, refunds, and alternative arrangements. 'We sincerely apologise to all affected customers. We understand the disruption this has caused and are doing everything we can to assist those involved,' says Kirby Gordon, chief marketing officer at FlySafair. What's behind the strike? The strike stems from a pay dispute between FlySafair and Solidarity, the union representing a portion of its pilots. While the union has framed its demand as a 10.5% increase in base salary, the full package, including flight pay, bonuses, and other benefits, equates to a 20.1% increase in total cost to company. By contrast, FlySafair's current offer includes a 5.7% increase on base salary, which is 1.5% above inflation, and when fully costed, represents an 11.29% increase in total cost to company. The airline maintains that this is a fair and responsible offer, especially in an economic climate where most companies are offering increases of around 4%. 'We must balance competitive pay with the responsibility we have to our 1,700 employees, the affordability we offer South African travellers, and the long-term health of the business,' says Gordon. FlySafair captains currently are paid between R1.8 million and R2.3 million annually, placing them in the top 1% of earners in South Africa. Many earn more than members of the airline's Executive Committee. Are pilots overworked? FlySafair captains averaged 63 hours of flight time last month, well below the regulatory limit of 100 hours. For comparison, a typical full-time employee works around 160 hours per month. The airline maintains that its pilot utilisation is compliant and not excessive. Strike escalation and ongoing talks The union initially called for a one-day strike, timed to coincide with the end of the school holidays. In response, FlySafair issued a defensive lockout, a standard labour protocol. Due to the nature of airline rostering, this meant affected pilots would not be rostered for seven days. Solidarity then escalated the action to a two-week strike. FlySafair has not rejected CCMA intervention and continues to engage with the commission and the union in good faith. Commitment to customers and employees FlySafair acknowledges the disruption caused to customers and is working to minimise the impact. The airline also highlights its responsibility to its 1 700 other employees, whose livelihoods are linked to the company's financial sustainability. 'We're committed to resolving this matter constructively and quickly. Our focus is on restoring full operations while ensuring that FlySafair remains a sustainable and affordable option for South African travellers,' says Gordon. Contact: Kirby Gordon [email protected] +27 71 636 0236
