Impacts of the micro environment on airline performances in Southern Africa: management perspectives

Abstract

The purpose of this study was to determine the impacts of the micro environment on airline performances in southern Africa. A mixed method research design was followed. Questionnaires were distributed at selected airlines to 154 key airline personnel. Factor analysis was used to identify the dimensions of micro environmental factors impacting on airline performances. The results indicated that competitive rivalry, the bargaining power of suppliers and customers significantly impacted (p<0.05) negatively on the aviation industry. Consequently, the high number of LCCs has created overcapacity and several suppliers can squeeze airlines, something that has stifled the region’s tourism prospects.