| dc.description.abstract | The low cost experience is a relatively new phenomenon in the African region with much
of the necessary management experience brought it from outside the region. African low
cost carriers are in the initial growth phase of their development, while many of their
American and European counterparts are approaching or have reached maturity. Due to
this, little data is available about low cost operations in Africa and specifically in Kenya.
The study was therefore designed to determine passenger perception of low cost and full
service carriers and also to establish the factors that influence passenger perception of
airlines in Kenya.
A cross-sectional survey design was employed. The population of interest was the
passengers flying Kenya Airways (network carrier) and Fly540 (a low-cost carrier). All the
passengers travelling from Nairobi (JKIA) to their various destinations flying the two
carriers on a particular day formed the population of study. Both groups were travelling to
the same city destination, but not necessarily to the same airport. A sample of 120
passengers was selected for the survey using simple random sampling technique. Sixty
passengers were selected from each of the airlines’ passengers on the particular day of data
collection. Data was collected using primary sources. The data collection tool was
questionnaires. Data was analysed using descriptive and inferential statistics.
Passengers perceive low cost carriers to offer very low fares in the market. This is exhibited
by the fact that most of those travelling in Fly540 did so solely because of the fares charged
and they also thought that the flight charges less fares as compared to Kenya airways. It is
for this reason that most of them would be switching to full carriers if KQ reduced its fares.
Even those that were travelling with KQ asserted that the fares were high but chose to
travel with the flight because of other reasons like comfort and quality rather than due to its
fares. The study established that age had the largest influence on passenger perception of
airlines with a correlation value of 0.919. This is followed by reason for travel with a
correlation coefficient of 0.681 then gender with correlation coefficient of 0.648. The study
recommends that instead of airlines using one business model, a combination can be done
so as to capture a larger share of the market as concerns those sensitive to prices and those
who need quality services rather than consider fares when booking flights. The study also
viii
recommends that airlines consider marketing to individuals different from group bookings.
It seems that most of those travelling as groups used the low cost carrier. Thus, the full
service carriers can devise strategies to attract group bookings in order not to lose business
to low cost carriers. | en |
