Harith General Partners, a Johannesburg-based private equity firm managing $3 billion in assets, is negotiating to acquire FlySafair, South Africa’s largest low-cost airline. The deal would mark Harith’s first major move into commercial aviation, expanding its existing transport investments that include toll roads and renewable energy projects across Africa.

FlySafair controls 40% of South Africa’s domestic flight market, having grown rapidly since its 2014 launch. The airline’s value hasn’t been disclosed, but industry analysts estimate its fleet of 26 Boeing 737s could command a premium given its dominant market position. A successful acquisition would make Harith one of Africa’s largest private aviation investors overnight.

The talks come as South Africa’s aviation sector rebounds from pandemic losses, with FlySafair posting record 2023 passenger numbers. Regulatory approval could prove complex given Harith’s government pension fund backers and competition concerns. Rivals Comair and Lift have both faced financial strains, potentially leaving FlySafair as the last major independent carrier.