BEE in Local Air Services

Sakeliga was approached by local aviation industry players about the Air Services Licensing Council's insistence on BEE certificates and transformation plans. Aviation operators are required in an apparently illegal manner to commit to BEE. Aviation operators include airlines and any person who provides a service (such as poison irrigation for agriculture) by aviation. The Council requires aviation operators to cede ownership to B-BBEE partners and threatens that the airlines will otherwise be ineligible for licenses. The relevant legislation does not provide for BEE requirements and the Council is acting outside their powers. Arbitrary BEE requirements by the Council makes it harder to do business in the industry. It also creates legal uncertainty and increases costs. Sakeliga therefore started litigation to have the Council's transformation and BEE policies declared unlawful.