Sakeliga has launched a new legal challenge targeting the International Air Services Council (IASC), accusing the body of unlawfully imposing Broad-Based Black Economic Empowerment (B-BBEE) requirements on international airlines seeking operating licences in South Africa.
Filed in the Gauteng Division of the High Court on 7 October 2025, the case argues that the IASC has exceeded its statutory powers under the International Air Services Act of 1993 by attaching race-based criteria to international air service applications.
Sakeliga warns that the practice risks damaging South Africa’s reputation as a global aviation hub and may discourage international carriers from servicing the country.
From Domestic to International Regulation
Sakeliga’s latest action follows its August 2025 High Court victory against the Air Services Licensing Council (ASLC), which regulates domestic air services. That case, launched in November 2024, challenged the ASLC’s practice of making B-BBEE compliance a condition for granting licences.
The court ruled that the ASLC’s approach was unlawful and unconstitutional, confirming that the Air Services Licensing Act 115 of 1990 contains no provision for race-based licensing criteria. The judgment also struck down an additional ASLC rule that prohibited recordings and the use of electronic devices during hearings, finding it inconsistent with transparency and public accountability.
Sakeliga first became aware of similar B-BBEE demands at the IASC — its international counterpart — in late 2023, through industry contacts. The organisation submitted Promotion of Access to Information Act (PAIA) requests to the IASC and the Minister of Transport, eventually obtaining council minutes in May 2025 that confirmed airlines applying for or renewing licences were being asked to submit B-BBEE certificates or “transformation commitments.”
These requirements, Sakeliga contends, mirror and even expand upon the domestic practices already declared unlawful.
Sakeliga’s Position
According to court papers and statements by Sakeliga, the IASC’s role under the 1993 Act is limited to assessing operational safety, local representation, and control — not ownership demographics or social transformation.
The organisation argues that demanding empowerment credentials from global carriers is “not only unlawful but absurd,” given that foreign airlines cannot restructure their international operations to meet South African racial ownership targets.
“This is yet another example of 3rd Wave BEE — where regulators unlawfully seek to make BEE a precondition for private commercial activity,” Sakeliga stated. “It threatens to isolate South Africa from global travel and trade.”
Sakeliga describes this trend as part of “Third Wave BEE” — the migration of transformation requirements from state procurement into private-sector licensing and regulatory frameworks. The group contends this represents a dangerous centralisation of economic control under race-based conditions.
The litigation seeks to review and set aside specific IASC decisions that denied or conditioned licences on these grounds while declaring the broader practice invalid.
Economic and Diplomatic Impact
The organisation warns that if left unchecked, the IASC’s demands could discourage foreign airlines from expanding routes to South Africa, reducing flight options, inflating ticket prices, and weakening the country’s competitiveness in logistics and tourism.
As a critical chokepoint for inbound and outbound flights, the policy could limit consumer choices and raise costs for businesses reliant on global supply chains.
Diplomatically, the case could revive international scrutiny of South Africa’s empowerment framework. While B-BBEE remains a cornerstone of national economic policy, Sakeliga argues that applying it to foreign enterprises without legislative authority undermines investor confidence and violates principles of equality and non-discrimination.
The controversy has already contributed to tensions over the past two years, amid growing disillusionment with race-restrictive policies.
Industry observers have long cautioned that restrictive or unclear licensing conditions can hinder South Africa’s economic recovery, especially as global trade routes shift and neighbouring countries position themselves as more business-friendly alternatives.
As of 9 October 2025, neither the IASC nor Transport Minister Sindisiwe Chikunga—who appoints council members and is named as a respondent—has issued public comment. Should the government defend the practice, it may signal an intention to expand transformation enforcement across international sectors, demonstrating a commitment to making B-BBEE compliance compulsory for all economic activity.
Founded in 2011, Sakeliga describes its mission as protecting the public interest by limiting state overreach and defending market freedom. The group says this new case aims to safeguard “not only current and prospective international air services operators, but all businesses that depend on reliable, safe, and competitive air services, free from irrational race restrictions.”
The matter is expected to proceed in the coming months and could establish a critical legal precedent on how far transformation policies may extend into South Africa’s international aviation and trade frameworks.
- Click here to download the notice of motion and founding affidavit, granted by order of the court.
- Click here for more on the previous ASLC case.
(Source: Sakeliga.org.za)
