Court rules international airlines not subject to BEE regulations

In a significant ruling by the Pretoria High Court, it has been determined that the International Air Service Licensing Council (IASC) in South Africa is not permitted to apply Black Economic Empowerment (BEE) criteria when adjudicating applications for international air service licenses. This decision stems from a suit filed by the non-profit organization Sakeliga, which argued that the IASC had unlawfully incorporated BEE requirements into its licensing process, violating its statutory mandate.

The IASC is primarily responsible for evaluating and granting the necessary licenses for airlines operating internationally to and from South Africa. The council also ensures that these airlines adhere to established operational and safety standards. However, concerns mounted within the aviation industry regarding the perceived overreach of the IASC’s authority, specifically its application of BEE criteria to licenses for foreign airlines.

In late 2025, Sakeliga initiated legal action following reports from industry stakeholders, who voiced apprehensions about the IASC’s adherence to BEE legislation. Sakeliga’s CEO, Piet le Roux, revealed that various private and diplomatic representatives had approached the organization to express their worries regarding the licensing authority’s integration of BEE assessments in the licensing process. This prompted Sakeliga to file a Promotion of Access to Information request aimed at uncovering relevant documents from the IASC.

Upon reviewing the obtained materials, which included meeting minutes from December 2023 to March 2024, it became evident that the IASC had requested B-BBEE verification certificates, future plans, and specific B-BBEE strategies from airlines involved in the licensing process. Sakeliga submitted evidence that suggested these requests represented a clear overextension of the IASC’s jurisdiction, which is governed by the International Air Services Act. The organization contended that the BEE transformation mandates were beyond the scope of this Act.

The court’s order, issued on June 5, declared the IASC’s application of BEE criteria as unlawful, effectively nullifying its licensing decisions that relied on such standards. The Department of Transport, whose Minister, Barbara Creecy, chose not to contest the application, acknowledged the ruling. Currently, there are no requirements for domestic ownership amongst international airlines in South Africa.

This ruling highlights ongoing tensions between regulatory frameworks and economic transformation policies within South Africa’s aviation sector, and it could have broader implications on how regulatory bodies approach licensing in the future.

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