An assessment of the perceived attractiveness of the Kenyan market to international airlines

Abstract

The primary objective of the study was to assess the perceived level of attractiveness of the Kenyan market to International airlines. The research sought to know from the airlines with current operations in and out of Kenya what they thought the level of attractiveness of the Kenyan market was to them. The study was motivated by the fact that the airline industry in Kenya has generated a lot of business interest lately due to the continued exit as well as entry of international airlines into the Kenyan market. The researcher therefore sought to find out the real reason behind this perplexing situation. Questionnaires were administered to senior managers/general managers of the airlines. Out of a total of 41 airlines that composed the total population, 29 responded, representing a response rate of 71%. Questions on the airline characteristics and profile such as their origin, the number and type of equipment operated, annual turnover, frequencies of operation per week were asked and the responses thereto formed the background information of the population. Data analysis on the six factors studied employed the use of statistical tools mainly the mean and the mode, factor analysis as well as the Chi square test of independence. The principal research finding was that the Jevel of attractiveness of the Kenyan market to international airlines is moderate. This is because three of the six factors (Barriers to entry, Rivalry among firms and government influence) were rated as strong, making the market unattractive. The other three factors (Bargaining power of buyers, Bargaining power of suppliers and the threat of substitutes) were found to be weak thus making the Kenyan market attractive to international airlines.