FlySafair notes the National Consumer Commission’s referral of its overbooking practices to the National Consumer Tribunal. The matter will now be considered by the Tribunal as an independent decision-maker, and FlySafair welcomes the opportunity to fully present its position.
Although FlySafair has cooperated fully with the Commission throughout its investigation, the Tribunal process is the appropriate forum for resolving differences in legal interpretation between the Commission and FlySafair. We remain confident that, on a full consideration of the facts, the legal framework and prevailing industry practice, it will be demonstrated that FlySafair has acted lawfully, transparently and in good faith, with due and careful regard to the rights of consumers.
A number of important facts remain central to this matter:
- Overbooking is expressly contemplated by Section 47 of the Consumer Protection Act and has long been recognised as a lawful and globally accepted practice within the airline industry when responsibly managed.
- The Consumer Goods and Services Ombud’s Advisory Note 9 of 2021 specifically recognised overbooking within the travel and aviation sector and provided guidance to industry on how such practices should be managed and remedied where disruptions occur.
- FlySafair understands that the advisory note is no longer published on the website of the Ombud but does not understand that it was formally withdrawn, or that its removal was based on formal industry consultation or direct notification processes clearly communicating a changed regulatory interpretation to affected operators . We believe this matter highlights the need for greater clarity and consistency regarding the treatment of overbooking practices across the aviation sector, tourism sector and consumer goods and services industry as a whole.
- Overbooking is widely used by airlines globally as a mechanism to account for anticipated no-show passengers, improve operational efficiency and help keep air travel affordable.
- FlySafair believes that it operates one of the more conservative overbooking policies in the market, with overbooking levels maintained below historical no-show rates.
- During the period under review, more than 99.98% of FlySafair customers travelled successfully as booked. While approximately 5,000 customers were on overbooked flights during the period assessed, the vast majority travelled exactly as booked, because the anticipated no-shows materialised as expected. As a result, only 0.02% of passengers were denied boarding and every one of them was offered re-accommodation, a refund, and compensation. 93.3% of flights over that period departed on time and no flights were cancelled.
FlySafair has fully cooperated with the Commission’s investigation over an extended period and has provided extensive operational data and information throughout the process. We will continue to engage constructively and transparently through the Tribunal proceedings.
FlySafair will continue to operate all scheduled flights as normal and customer bookings remain unaffected.
As the matter is now before the Tribunal, it would not be appropriate to litigate the detailed merits of the case through the media, and FlySafair will therefore refrain from further substantive public comment at this stage.
Note to Editors: About Advisory Note 9
Advisory Notes are official guidance documents issued by the Consumer Goods and Services Ombud (CGSO), an independent body established under the Consumer Protection Act (CPA) to help businesses and consumers understand and apply the Act.
In 2021, the CGSO issued Advisory Note 9, which provides detailed guidance on how companies should manage overbooking, cancellations, and ticketing practices. The Note recognises these practices as common across many industries, including aviation, provided they are managed fairly, transparently, and in line with the CPA.
FlySafair has structured its policies and procedures in accordance with this Advisory Note to ensure both compliance with the law and alignment with accepted best practice.
For more information, a copy of the Advisory Note can be acquired through the CGSO and a number of legal firms have published opinions and reviews of the same online.