Causes of Airline Failure: A Study of Defunct African Airlines
Ojebode, EbunOluwa (2022)
2022
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Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi:amk-2022122231405
https://urn.fi/URN:NBN:fi:amk-2022122231405
Tiivistelmä
The African aviation industry is projected to grow rapidly in terms of passenger growth. As a result, airlines who are the major stakeholders in the industry need to be prepared to accommodate and benefit from this growth. The only way airlines can accommodate and benefit from the growth is if they are still existing and thriving.
The aim of the thesis is to find out the major cause(s) of African airline failures and what existing and future African airlines can learn from it. This is based on the logic that a clear understanding of the causes of a problem is necessary for the remediation of such a problem. The aim of the thesis is achieved by synoptically analysing African airlines that have ceased operations to find out the primary reason for closure and creating a questionnaire to get the opinion of aviation workers and experts in Africa.
A total of 31 defunct African airlines were studied in-depth through archival document analysis, while the views and perspectives of 32 aviation workers were obtained through a semi-structured questionnaire. While the former data set was analysed through meaning-making, the latter was analysed using frequency count and percentages. The findings show that the major causes of airline atrophy in Africa are different forms mismanagement, including fraud, and government unfavourable policies and indirect interference. The pattern of atrophy shows that the mortality rate is high in the first five years, and that airlines that survive that crucial period tends to development some form of resilience that keeps them going. A combination of creative and disciplined management, favourable government policies, a robust source of capital would help reduce the rate of atrophy of African airlines.
The aim of the thesis is to find out the major cause(s) of African airline failures and what existing and future African airlines can learn from it. This is based on the logic that a clear understanding of the causes of a problem is necessary for the remediation of such a problem. The aim of the thesis is achieved by synoptically analysing African airlines that have ceased operations to find out the primary reason for closure and creating a questionnaire to get the opinion of aviation workers and experts in Africa.
A total of 31 defunct African airlines were studied in-depth through archival document analysis, while the views and perspectives of 32 aviation workers were obtained through a semi-structured questionnaire. While the former data set was analysed through meaning-making, the latter was analysed using frequency count and percentages. The findings show that the major causes of airline atrophy in Africa are different forms mismanagement, including fraud, and government unfavourable policies and indirect interference. The pattern of atrophy shows that the mortality rate is high in the first five years, and that airlines that survive that crucial period tends to development some form of resilience that keeps them going. A combination of creative and disciplined management, favourable government policies, a robust source of capital would help reduce the rate of atrophy of African airlines.