Operational Environment and Performance of Airline Projects in Kenya: a Case of Kenya Airways Limited

Abstract

Operational environments are extremely unbalanced fluctuations experienced in the macro-environments. Despite airlines using the PESTLE model analysis to unravel the impact of these micro-environments on their performance, they have not confidently concluded that they are satisfied with the accomplishments to date. Fuel fluctuation and labor miles ahead the airline operating costs and high labor turnover is still experienced in airlines. Government taxes, fines and trade wars are still affecting airline performance despite numerous studies to minimize their effect. Political unrest and economic recession on the other hand also affect airline performances to a greater extent worldwide. The purpose of this study was to examine the operational environment and performance of airline projects in Kenya. This study focused on six projects within Kenya Airways which were grouped under political, economic, and legal operational environments. The study was led by the following objectives: To establish the influence of economic operational environment and the performance of airline projects in Kenya, to determine the influence of political operational environment and the performance of airline projects in Kenya and to identify and assess the influence of legal operational environment and the performance of airline projects in Kenya. The study was anchored on contingency theory. The research used a descriptive survey design under a qualitative mixed approach. The target population was 335 employees from different departments in Kenya Airways. The study used Stratified sampling technique in defining the job groups. A sample of 182 was computed using Yamane formula. The researcher conducted a face-to-face interview and employed a closed questionnaire as tools for data collection. The researcher then conducted a pilot testing of the instrument by administering the questionnaires to 10% of the sample size and use construct and content validity to prove how valid the research instrument is. Descriptive statistics and correlation analysis of Karl Pearson’s correlation (r) were conducted to determine the relationship between the variables which revealed that: there was a statistically strong positive correlation exhibited between operational environments and performance of an airline projects (r= 0.73). At the same time the researcher used Cronbach’s alpha method, based on the internal consistency of the research instruments to check how reliable the results are. A tail probability of 0.05 and 95% confidence level was and 0.72 was obtained quantifying the result as reliable. The study concluded that operational environments should be integrated in performance of an airline projects. It was recommended taxation should be minimized, maintenance methods should be employed in fuel saving initiatives and to employees’ turnover should be fully researched according to employee’s needs. Among the further study suggestions were a study on the political unrest, use of synthetic fuel, exploration of taxation areas in airlines and economic recession.