South African regional carrier and ACMI specialist CemAir (5Z, Johannesburg O.R. Tambo) has objected to a proposed merger between Harith Aviation and Safair Holdings, parent of low-cost carrier FlySafair, arguing the deal creates risks from overlapping ownership interests involving the government-owned Public Investment Corporation (PIC).

Presenting its case before South Africa's Competition Tribunal in Johannesburg on August 17, 2026, CemAir's counsel Dwight Snyman claimed that the "dense corporate overlap" between Harith's backers and the PIC could lead to an exchange of commercially sensitive information, even unintentionally, despite proposed safeguards.

The objections come after the Competition Commission, an advisory body, recommended conditional approval of the transaction in July 2026. Harith Aviation announced in February that it had agreed to acquire FlySafair from Irish lessor ASL Aviation Holdings, subject to regulatory approvals.

CemAir's case

Snyman alleged that the PIC directly appoints directors of Harith General Partners, a Johannesburg-based private equity firm that is part of a consortium backing Harith Aviation, the latter being a ring-fenced special purpose vehicle (SPV) established specifically to execute the buyout of FlySafair. He argued that the only way to prevent such exchanges would be to prohibit all communication between individuals linked to the organisations, which would be impossible to guarantee.

CemAir also raised concerns about competition at Johannesburg Lanseria, where Harith General Partners and the PIC are linked through the airport's ownership structure. FlySafair already has a base at Lanseria. The merger could give FlySafair an anti-competitive advantage through common interests in airport infrastructure, Snyman argued. Any merger approval would require structural remedies to preserve the airline's commercial and operational independence from Lanseria and related aviation infrastructure interests.

Snyman also requested the tribunal to consider the broader pattern of overlapping ownership and control in South Africa's aviation sector, highlighting the PIC's 20% stake in Airports Company South Africa (ACSA), which operates the country's nine state-owned airports.

Countering that argument

Responding to CemAir's submissions, Competition Commission representative Daniel Adams said the regulator had examined the relationship between the PIC and Harith Aviation and concluded that the PIC would hold only a minimal indirect interest in FlySafair after the merger. He added that the PIC would not form part of the acquiring group, there would be no common board representation, and that Harith had agreed to conditions governing information sharing and non-discriminatory access to services at Lanseria.

Counsel for the merging parties, Jerome Wilson, said no PIC funding would be used to finance the acquisition, either through equity or debt.

He described CemAir's arguments as a "dangerous and disturbing thesis", maintaining that the PIC has no control over Harith General Partners and would acquire only a "minuscule" interest in FlySafair without any controlling rights.

"CemAir's concern does not cash out into any competition law concern," he stated.

Labour concerns

Presenting their concerns to the tribunal, the South African Cabin Crew Association (SACCA), which represents the majority of FlySafair cabin crew, said that while it was not consulted as a stakeholder, it does not oppose the proposed merger provided it does not result in retrenchments. It called for firm guarantees that cabin crew jobs would be protected and sought greater transparency over safeguards for temporary employees.

Safair Operations CFO Pieter Richards confirmed that there would be no pre-merger retrenchments and that the temporary employment of 120 seasonal cabin crew during peak season in October 2025 had "nothing to do with the [proposed] merger".

The Competition Tribunal reserved its decision following the hearing and said it would communicate in due course whether it approves the proposed acquisition.