11 Dec 2025
Investec Aviation Finance powers Federal Airlines fleet expansion
Investec Aviation Finance is propelling Federal Airlines to new heights, as South Africa’s leading shuttle and charter flight provider expands its fleet to meet the rising influx of overseas tourists and increased demand for exclusive travel to premier safari lodges in South Africa.
Understanding the unique requirements of Federal Airlines, Investec Aviation Finance has restructured and upsized a senior revolving credit facility first provided to Federal Airlines in 2023.
“Federal Airlines plans to use this facility to refinance the acquisition of a pre-owned Embraer ERJ 145, a Cessna 208B Grand Caravan aircraft and a spare engine. Moreover, Investec’s forward-thinking structuring ensures ongoing growth for Federal Airlines, with the facility also securing the delivery financing for two additional new Cessna Caravan 208B aircraft scheduled for arrival in 2026”, explains Marc Abraham from Investec Aviation Finance.
“Our fleet is equipped with a diverse range of aircraft that offer the highest levels of comfort, reliability, quality and safety to travellers, enabling us to offer the required versatility and responsiveness for our shuttle and charter services,” explains Jarryd Prince, Chief Commercial Officer at Federal Airlines.
Established in 2004, Federal Airlines offers a premium point-to-point shuttle service and highly customisable charter flights for both business and leisure travellers on safari and vacation in South Africa.
The diverse Federal Airlines fleet operates bespoke and niche routes, making various luxury safari destinations accessible in the Kruger National Park, Sabi Sands Private Game Reserve, Timbavati Private Nature Reserve, Thornybush Game Reserve, Madikwe Game Reserve, Londolozi Game Reserve and Marakele National Park.
“With our extensive fleet of aircraft flying in the Southern African region, our brand has become synonymous with delivering an unparalleled and seamless air travel experience as part of safari vacation and holiday experiences,” adds Prince.
Federal Airlines’ fleet expansion comes at a time when South Africa is experiencing a boom in tourism, particularly a resurgence in overseas travellers with greater purchasing power and a keen interest in experiencing luxury safaris.
According to data from Stats SA’s international tourism release, overseas traveller numbers climbed by 27.6% year on year (y/y) in September. The largest number of overseas tourists stemmed from the USA (18.7%), followed by the United Kingdom (14.0%).
Moreover, advance indications provided by October’s international tourism report reveal that overseas visitor numbers increased by a further 25.8% y/y during that month, which bodes well for the sector in the fourth quarter.
“This strategic partnership between Investec Aviation Finance and Federal Airlines exemplifies how tailored financial solutions can drive growth and innovation in the aviation sector, unlocking new opportunities for both operators and travellers in South Africa’s thriving luxury tourism market” concludes Abraham.
Read more on our transaction page: https://www.investec.com/en_za/investec-for-corporates/transactions/federal-airlines-2025.html
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