What is the impact of airline alliances? A case study of Qatar airways investment in Rwanda
Date
2021
Authors
Babra, Muthini Kimuli-
Journal Title
Journal ISSN
Volume Title
Publisher
Strathmore University
Abstract
The study aimed to establish the impact of airline alliances with a case study of Qatar
Airways investment in Rwanda. In precision, was to detennine the impact of Qatar airways
venture in Rwanda on passenger traffic through Bugesera international airport and the impact
of Qatar airways venture in Rwanda on passenger traffic through Jomo Kenyatta International
Airport and Addis Ababa Bole International Airport. The study was guided by the event
study methodology, dummy variable approach, in its analysis. The data in consideration is air
passenger numbers for four hubs from the years 2010 to 2018. A dummy variable was
introduced for the year post the venture to analyse the effects. The results showed that the
venture did have an impact on passenger number traffic in Bugesera, Jomo Kenyatta, and
Bole International Airports. The airports registered increases in air passenger traffic of
444,639, 841,767 and 4,468,258 annually respectively. Increases in passenger traffic for the
hubs led to the conclusion that the hubs are complementary as opposed to being competitive.
The r-squared from the regression analysis were 57.15, 61.8% and 73.7% respectively which
led to the implication that impact of the dummy explained the variations in passenger traffic
in Bugesera, Jomo Kenyatta and Bole International Airport's respectively. Policy
implications from the study concluded that smaller airlines benefit from fanning an alliance
with already established airlines and that leading hubs also benefit from alliances. The study
therefore met the objectives.
Key words: Airline alliances, Qatar venture, Impact of alliances
Description
Submitted in partial fulfilment of the requirements for the Degree of Bachelor of Business Science in Financial Economics at Strathmore University