The financial and economic performance of SADC airlines has been poor for some time. The governments, citizens of SADC countries and donor agencies are no longer tolerating the existence of the loss making foreign currency intensive, prestige national airlines. This dissertation seeks to find ways to turnaround the poor performance of SADC airlines. The dissertation focused on the three basic turnaround strategies of cost leadership, differentiation and focus. The McKinsey 7-S framework was used to analyse the strengths and weaknesses of SADC airlines. The external (operating) environment was also analysed to determine the opportunities and threats. A study was carried out of some successful turnarounds of British Airways and Scandinavian Airline System. Singapore International Airlines, one of the most successful airlines in the world, was also studied in detail. The study showed that the strategy of cost leadership while focusing on domestic and regional operations was most likely to result in optimal performance of SADC airlines / Economics and Management Sciences / M.Com. (Transport Economics)

The financial and economic performance of SADC airlines has been poor for some time. The governments, citizens of SADC countries and donor agencies are no longer tolerating the existence of the loss making foreign currency intensive, prestige national airlines. This dissertation seeks to find ways to turnaround the poor performance of SADC airlines. The dissertation focused on the three basic turnaround strategies of cost leadership, differentiation and focus. The McKinsey 7-S framework was used to analyse the strengths and weaknesses of SADC airlines. The external (operating) environment was also analysed to determine the opportunities and threats. A study was carried out of some successful turnarounds of British Airways and Scandinavian Airline System. Singapore International Airlines, one of the most successful airlines in the world, was also studied in detail. The study showed that the strategy of cost leadership while focusing on domestic and regional operations was most likely to result in optimal performance of SADC airlines / Economics and Management Sciences / M.Com. (Transport Economics)

The airline industry has grown rapidly over the past few decades, recording a ten-fold rise in passenger numbers and a fourteen-fold increase in cargo volumes. This growth has created overwhelming value to airline passengers, employees, suppliers and the broader economy. Unfortunately, this industry has been affected by terrorism attacks, wars, revolutions, pandemic fears, earthquakes, volcanoes, failing economies and skyrocketing fuel prices all of which have negatively impacted on profitability and resulted in intense competition. Consequently, airlines have spent the last decade in survival mode having to adapt to harsh changes. Air Zimbabwe, a state-run organisation which operates in this highly regulated and turbulent industry, is faced with numerous micro and macro environmental challenges and has been purposively selected for this study. According to company statistics, the airline’s annual passenger uplifts have declined from a peak of over 1 million in the 1990s to less than 200 000 in 2011, with revenue generation declining in correlation. Whilst Air Zimbabwe has experienced depressed demand for its services, competitor airlines are recording brisk business. The aim of this study was to investigate how a struggling organisation, which operates in a turbulent environment, can improve its competitiveness and profitability by better understanding the impact of industry role players and adapting organisational strategies to industry variations. This study examined, from the point of view of the industry players themselves, the extent to which customers, suppliers, competitors, regulatory authorities, substitute products and new entrants have impacted on the competitiveness and profitability of the airline. Major findings reveal that an organisation cannot operate in isolation and be competitive or profitable, but constantly needs to analyse the industry environment in which it operates in and to amicably interact with other industry role players. The research outlines the need for competition in certain areas and cooperation in others. / Business Management / M. Com. (Business Management)

The airline industry has grown rapidly over the past few decades, recording a ten-fold rise in passenger numbers and a fourteen-fold increase in cargo volumes. This growth has created overwhelming value to airline passengers, employees, suppliers and the broader economy. Unfortunately, this industry has been affected by terrorism attacks, wars, revolutions, pandemic fears, earthquakes, volcanoes, failing economies and skyrocketing fuel prices all of which have negatively impacted on profitability and resulted in intense competition. Consequently, airlines have spent the last decade in survival mode having to adapt to harsh changes. Air Zimbabwe, a state-run organisation which operates in this highly regulated and turbulent industry, is faced with numerous micro and macro environmental challenges and has been purposively selected for this study. According to company statistics, the airline’s annual passenger uplifts have declined from a peak of over 1 million in the 1990s to less than 200 000 in 2011, with revenue generation declining in correlation. Whilst Air Zimbabwe has experienced depressed demand for its services, competitor airlines are recording brisk business. The aim of this study was to investigate how a struggling organisation, which operates in a turbulent environment, can improve its competitiveness and profitability by better understanding the impact of industry role players and adapting organisational strategies to industry variations. This study examined, from the point of view of the industry players themselves, the extent to which customers, suppliers, competitors, regulatory authorities, substitute products and new entrants have impacted on the competitiveness and profitability of the airline. Major findings reveal that an organisation cannot operate in isolation and be competitive or profitable, but constantly needs to analyse the industry environment in which it operates in and to amicably interact with other industry role players. The research outlines the need for competition in certain areas and cooperation in others. / Business Management / M. Com. (Business Management)