|dc.description.abstract||The low cost airlines world over are performing much better in terms of profit and
passenger numbers than most mainstream airlines. Between 2006 and 2009 the airline
industry in Kenya saw the advent of low cost airlines. This study assessed how the low
cost airline model in Kenya has affected the airline industry. .
The study was done in three parts: First, interviews with airline companies were used to
get data on how the low cost airline model was being used in Kenya. Secondly,
questionnaires were distributed to 120consumers to get data on factors that determine the
use of low cost airlines by consumers in Kenya and lastly an analysis of secondary data
and interview data from airline companies and the Kenya Aviation Authority was used to
evaluate the effect of the low cost model on the airline industry in Kenya.
The findings from the qualitative assessment gave evidence that low cost carrier model
was not being applied comprehensively in Kenya. The findings from the quantitative
analysis concluded that the emergence of low cost carrier has influenced passengers to
change their travel patterns due to the following factors: better service, ability to take more
vacations, ability to save on time and the ability to save on costs. The findings from the
quantitative analysis from secondary data concluded that full service airlines in Kenya are
impacted by low cost carriers as their fares have stayed constant over the years despite
rise in operational costs and has thus caused a decline in yields.
The recommendations would be that the low cost carrier model should be fully adapted to
get the benefits and see profitability. The airlines, both full service airlines and low cost
carrier need to focus on the factors that influence the consumers to change their travel
patterns and improve on those factors to attract the Kenyan consumer. Given the impact
low cost carriers have had on Kenya Airports Authority in terms of an increase in revenue
generation the government should increase airport infrastructure and support low costs
carriers to become sustainable.
Further research may explore an airline model that can work for Kenya taking to account
the different dynamics in the Kenyan market environment. Further research on the low
cost airline model should also be done on a larger basis covering the East African region.||en_US