Impacts of the macro environment on airline operations in Southern Africa

Abstract

Tourism depends to a large extent on air travel and transport. The reliability and dependability of carriers to perform consistently is therefore of critical importance to the travel and tourism industry. The unscheduled termination of airline services caused by challenges in the macro environment has proven to be extremely disruptive to business travellers and holiday-makers alike. Operating airlines in southern Africa has proved to be fraught with challenges in the macro environment resulting in several airlines terminating their services after short periods of operation. This article focuses on the impacts of the macro environment on airline operations in the region. From this study, it is clear that social and technological factors create opportunities for airlines in southern Africa, but that their ability to survive financially are seriously threatened by political and economic factors. Government bailouts to state carriers has skewed commercial operations resulting in an un-level playing field with private airlines.