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The B-BBEE Dilemma in South Africa’s Aviation Sector

Ismail Joosub discusses South Africa’s aviation industry and the introduction of Broad-Based Black Economic Empowerment (B-BBEE) requirements into the air services licensing process which threatens the industry.

The post SOARING OR STALLING? THE B-BBEE DILEMMA IN SOUTH AFRICA’S AVIATION SECTOR appeared first on FW de Klerk Foundation.

Issued by Ismail Joosub on behalf of the FW de Klerk Foundation:

South Africa’s aviation industry is undergoing a turbulent period—one that requires careful consideration and decisive leadership. The aviation sector is not only a vital economic engine, but also a key enabler of trade, tourism and global connectivity. Unfortunately, the introduction of Broad-Based Black Economic Empowerment (“B-BBEE”) requirements into the air services licensing process threatens to undermine its growth and long-term competitiveness.

The Air Services Licensing Council (“ASLC”), under the Air Services Licensing Act of 1990 (“ASLA”), has the critical role of regulating air service licenses. In 2023, the council introduced a new requirement: Air service applicants must submit transformation plans detailing how they will improve their B-BBEE scores. While well-intentioned, this move has sparked concerns that it burdens operators with unnecessary requirements and risks conflicting with the existing legislative framework that governs the sector.

Under the Air Services Licensing Act, section 12 makes it clear that no one can operate an air service without a valid license issued in accordance with the Act. Nowhere in the legislation is B-BBEE mentioned as a criterion for obtaining a license. Introducing this requirement would likely exceed the ASLC’s mandate, which focuses on ensuring that air services are safe, efficient and financially viable. By straying from these core principles, there’s a risk of creating unnecessary legal complications that could undermine the industry it seeks to regulate. Section 16(4) of the ASLA is also clear: Licensing decisions should be based on the applicant’s ability to operate a safe, reliable service, with adequate insurance and financial capacity. Safety, financial soundness and operational competence are the key factors. B-BBEE compliance simply doesn’t fit within this framework, which…

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Angie Motshekga: {2024 – present} Matsie Angelina “Angie” Motshekga (born 19 June 1955) is a South African politician and educator who is currently serving as the Minister of Defense and Military Veterans since 3 July 2024.

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