High Court Strikes Down BEE Requirements for International Airline Licences

A landmark Pretoria High Court ruling has removed Broad-Based Black Economic Empowerment (B-BBEE) requirements from the licensing process for international airlines operating to and from South Africa, providing greater regulatory certainty for foreign carriers serving the country.

The judgment follows legal action brought by business organisation Sakeliga against the International Air Services Council (IASC), which had sought to consider B-BBEE compliance and other race-based criteria when adjudicating international air service licence applications. The court found that the IASC had acted beyond the authority granted to it under the International Air Services Act, declaring the council's application of B-BBEE criteria unlawful and setting aside the practice.

Under the ruling, international airline licence applications must be evaluated solely according to the requirements contained in the Act and its accompanying regulations. These include operational capability, safety compliance, residency provisions and ownership and control requirements. The decision means that international passenger, cargo and specialised air service operators can apply for and renew operating licences without being required to demonstrate B-BBEE compliance.

The ruling is expected to have important implications for international airlines serving South Africa, many of which had raised concerns about the introduction of criteria not specifically provided for in aviation legislation. For airlines and foreign aviation investors, the judgment reinforces the principle that aviation regulators may only apply requirements explicitly authorised by legislation when making licensing decisions.

The case also highlights the importance of regulatory certainty within South Africa's aviation sector, particularly at a time when the country is seeking to strengthen international connectivity, attract investment and support growth in passenger and cargo operations.

According to Sakeliga, concerns first emerged in 2023 when reports surfaced that the Air Services Licensing Council (ASLC), responsible for domestic air service licences, was using B-BBEE-related considerations in licensing decisions. During its subsequent investigation, the organisation said it became aware that the IASC was applying similar requirements to international carriers operating to and from South Africa.

Sakeliga initiated legal proceedings against the IASC in October 2025. The Minister of Transport later indicated that the application would not be opposed, while the IASC withdrew its opposition in February 2026, clearing the way for the court order. While the judgment resolves the issue of B-BBEE requirements for international air service licensing, broader debates surrounding transformation requirements within the aviation sector continue.

Sakeliga has indicated that it is investigating complaints involving Airports Company South Africa (ACSA), in which concerns have been raised regarding empowerment-related requirements linked to airport property leases, hangar facilities, and office space agreements.

The organisation has also acknowledged the support received from international airlines, foreign embassies and industry representatives during the investigation and litigation process.

For the aviation industry, the ruling represents a significant clarification of the regulatory framework governing international air services and may influence future discussions around the application of non-aviation policy objectives within aviation licensing processes.