turnaround strategies for sadc airlines with specific reference to air zimbabwe

215 Pages·2014·7.32 MB·English

TURNAROUND STRATEGIES FOR SADC AIRLINES
WITH SPECIFIC REFERENCE TO
AIR ZIMBABWE
subm.itted iTt 'fulfilmerd. o-f. the regniremen.t "far
the degree of:
MASTER OF COMMRRCR
irt the subject
TRANSPORT KCONOKIC.~
at the
f.JHIVKRSIT'l OF SOUTH AFRICA
SUPERVISOR: PROFHSSOR t1 SH.MlIA
.JOINT SUPERVISOR: . PROFESSOR C A SMUTS
MARCH 1998
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Air Z im.bat..?.ae,.
Airli"t.'les},, British.
Pacific Ls.e lte. Al.
Airlir1.e,
the for
b_ Mr War-ren Basler,. (;bi-ef Offi c-er of Basler
Airlines,. Wisconsin.,. USA.
c. Mr P.et.er Richards,. Senior Fligh~ engineer.,. British Airways.
d_ Mr .L.. . v"7 . Boerrigt.er,. Mechanical 0\.-erhaul Manager,. Air
Zfo:babwe C-0rporation.
e. Mr E. Mo:?ro,. Chief Instructor.,. Avi.ation: T~ainil'lg School,. Air-
iii
h. Chief
i. Ms Beverly Bennett.,. British Airways Manager for Zimbabwe.,
Angola and Mozambique.
j. Mr D Matikiti.,. Quality Assurance Manager.,. Air Zimbabwe
Corporation.
k. Mr M Madders.,. retired director of the Department of Civil
Aviation.,. Zimbabwe.
l. Mr G Konate.,. Technical Director.,. African Airlines
Association.
I would like to thank my super,~·isor.,. Professor M Shahia and
joint Sl.lpervisor.,. Professor (.': A Smuts, for thei!" interest.,
guidance and direction throughout the study.
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Lie.t of T~.bles--------------------------------------- lti.i
xiii
IHTROIXJCTIOll------------------------------------ l
1-1 ~kgrrftHld to the Stl.lt'.b°--------------------- l
1-Ll l
LL2 4
LL3 Globalisati<Jn---------------·--------- 7
1-2 Limitatiun of tb.e StUt"ly-------------------- 9
1-3 lfJ
1-4 Objectives of the st.Ut".b'-------------------- 13
1-4-1 Main objective-----~------------------ 13
1-4-2 Subsidia't'Y' Objectives----------------- 13
1_5 Metro.1dology _______________________________ _
14
1-5-1 Airlira.es------------------------------ 14
1-5-2 DF.:pa:rl.me-clt r..;"f Ci.,1i l 1-..v iat. irJn ( DCI-.. ) __ -- 15
1-5-3 IATA/AFRAA/AFCAC.--------------------- 16
1-5-4
Co:mmm'licat iora.s Cr..nmaission {SA.Tee) •• - - - 16
1-5.5 17
l!r"..;r.1~- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
1-5_6 17
LS lbq.asi.i:.i.r..1Ta. o'f i'.. he !::;t.'Ol'.ly. ___ - - - •••••• - - - - - - - 17
'1.'HKORY/LITKBA'TURK RKVIIDl.----------------------- 19
2-1 19
2-2 Types of Turnarr.ro:nd Strategies------------- 19
2 -3 Cr.1e.-t te~rlersh i1~ Strategy ---- -- ----- -- -- ---- 24
2_3_1 General------------------------------- 24
Pr<fllnctian Efficierar...7 ________________ _
2_3_2 25
2_3_3 ~J.:trk.et/Se"C'Vice Efficiel'l'-"Y----------- 30
2_3_4 34
Cr..16t Efficiear~"Y----------------------­
2_3_5 Porter~s Cr..?..D;~titive Forces----------- 42
2_3_s Risi"..s r. .r i Cr.Jst U::arlership Strategy ___ - _ 43
2_3_7 44
s~.'t".1- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
2.4 Differera.tiatirJn Strat.. eg-.;_ --- ---- ---------- - 44
2_4_1 44
Jt.j.;.".,.
~
45
2 .. 4 .. 4
Asia.n Airliries ......... ... A&:'.
-.:;•....:"
2.4 .. 5 F·orces. 48
2 .. 4 .. 6 4.9
2. .. 4 .. 7 Diiie"!·e~r~t i.::s.:t. ir..r r1 _
::: . 4. 8
............. .
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2 .. 5 .. l ~3.e·r1e-!""~. l. .. ... ... ... .. ... ... .. ... ... ... ... ... ... ... .. ... ... .. .. - ... - ... ... ... .. .. ... .. .. 50
Risks r,;f 53
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2 .. 6 .. 3 57
2 .. f3 ... 4
e:c~l Oer.. b ~l.ct if'...r rts ..
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3_ CASE STUDIRS OF "l.'Wf'} SUCCKSSFiJL: TURNAROUNDS AND A
72
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British ..
Ai:~ays
.....
7~
74
:3 ... 2 ... 3
3 .. 2 ... 4
3 ... 2 .. 5 '7"7
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3 ... 2 .. 7
3 .. 3 ... 1 Br.J.ckgl: .. f'J1'XC~t"J. ....... - ................... ...
l31
liegr.s. f~. .r l:·iez· .......................... .. ~31
3_3_5
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!~1.:r~ae.1:7 ......................................................... ...
3 .. 4
3_•L 1 87
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3_.iL? ~:!o.r gr.; ... ... .. ... ... ... .. ... ... ... ... ...
94
3_4_10 Fi·ccr.s:rtcia.l Posit.., irJ·r, .................................................... ...
3_.t_ 11 -- .. -.. - .. -.. .. .. ---------- -
!'31:~:.::·y_ ... ... ... ... ... ... ... ... 100
.. ----- ----.. -- -.. - --- --.. - --
... ... ... ... ... l~)l
4. PRAGMATIC TURNAROUND STO..Js.TRGIKS FOR
SADC AIRLINES ____ _ - - .. -- .. -----.. -.. .. ..
... ... ... ... ... ... ... ... ... ... ... ... ... ... 103
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