An analysis of the impact of the micro environment on airline performances in South Africa using Porters' five forces model

Abstract

The reliability and dependability of carriers to perform consistently is of critical importance to the tourism industry. This article focuses on the impacts of the micro environment on airline performances in South Africa. A mixed-methods research design was followed. Purposive sampling was used to collect data from 154 respondents from eight different airlines. From the study it is clear that two forces, namely rivalry amongst existing competitors and the bargaining power of suppliers significantly (p < 0.05) and negatively impacted on the performances of all airlines whilst the threat of substitute products significantly (p < 0.05) and negatively impacted on the performances of state carriers. The bargaining power of customers significantly (p < 0.05) and negatively impacted on the performances of Comair, Mango, SAX and SAA. To improve airline performances, the South African government must create a level playing field for airline operators and stop 'overprotecting' national carriers.