An assessment of key indicators of sustainable development in the South African airline industry

Abstract: Sustainable development is a central topic of debate with regard to the social, economic and environmental activities of public and private organisations. The South African government has adopted a forward-looking policy in this area since the concept of sustainable development must be integrated into the activities of the various government departments and organisations. The aviation industry involves mass transport which is rapid, safe and reliable. To date, over the 20thcentury, the quality of air transport had seen a significant improvement, costs were reduced and demand kept on increasing. The social and economic advantages of air transport are extensive; however, its environmental costs are high. At the current rate of development, air transport is considered to be unsustainable in the long-term. Since, it is considered as a process based on innovations, which would ensure long-term sustainable airline. To this end, this study aimed at assessing the key indicators of sustainable development in the airline industry, using the South African airline industry as case study. In order to achieve this goal, the study adopted a two-fold approach noting that (1) critical appraisal of existing literature on sustainability practices within the airline sector (2) refining the identified flaws by means of quantitative research questionnaires survey...M.Tech. (Operations Management

Strategy Tripod Perspective on the Determinants of Airline Efficiency in A Global Context: An Application of DEA and Tobit Analysis

The airline industry is vital to contemporary civilization since it is a key player in the globalization process: linking regions, fostering global commerce, promoting tourism and aiding economic and social progress. However, there has been little study on the link between the operational environment and airline efficiency. Investigating the amalgamation of institutions, organisations and strategic decisions is critical to understanding how airlines operate efficiently. This research aims to employ the strategy tripod perspective to investigate the efficiency of a global airline sample using a non-parametric linear programming method (data envelopment analysis [DEA]). Using a Tobit regression, the bootstrapped DEA efficiency change scores are further regressed to determine the drivers of efficiency. The strategy tripod is employed to assess the impact of institutions, industry and resources on airline efficiency. Institutions are measured by global indices of destination attractiveness; industry, including competition, jet fuel and business model; and finally, resources, such as the number of full-time employees, alliances, ownership and connectivity. The first part of the study uses panel data from 35 major airlines, collected from their annual reports for the period 2011 to 2018, and country attractiveness indices from global indicators. The second part of the research involves a qualitative data collection approach and semi-structured interviews with experts in the field to evaluate the impact of COVID-19 on the first part’s significant findings. The main findings reveal that airlines operate at a highly competitive level regardless of their competition intensity or origin. Furthermore, the unpredictability of the environment complicates airline operations. The efficiency drivers of an airline are partially determined by its type of business model, its degree of cooperation and how fuel cost is managed. Trade openness has a negative influence on airline efficiency. COVID-19 has toppled the airline industry, forcing airlines to reconsider their business model and continuously increase cooperation. Human resources, sustainability and alternative fuel sources are critical to airline survival. Finally, this study provides some evidence for the practicality of the strategy tripod and hints at the need for a broader approach in the study of international strategies

Operational performance measurement of world major airlines with a particular emphasis of Ethiopian airlines : an integrated comparative approach

Organizations specifically the airlines industry are increasingly facing the challenges of operational efficiency measurement. During the last years enormous attention has been given to the assessment and improvement of the performance of productive systems. However, literatures show that there are limitations of the existing models to measure efficiency uniformly and exhaustively across the airlines. The problems are due to lack of the technical efficiency measuring model which unifies and integrates different measuring models into a single model.Therefore, this thesis investigates assessment of the operational performance of world major airlines by employing integrated comparative models to address the above problems. In this study, technical efficiency is addressed among many performance issues by using three types of modes of performance measurement: a non parametric one, represented by Data Envelopment Analysis (DEA) and; a parametric one, represented by Stochastic Frontier Analysis (SFA) and the Balance Scorecard (BSC) which is a strategic management tools. Unlike most of the previous studies, this study integrates the BSC concepts into DEA and SFA model. To evaluate technical efficiency of major international airlines, the study use panel of unbalanced data for the year 2007-2014 to make integrated comparative analysis. The research project incorporates seven leading variables and four lagging variables taken from BSC concept to implement into the DEA and SFA. All the three models of performance measurements have their own strength and limitation if they are used alone. But if the three models are integrated and combined together, they would yield better comparative and quality of efficiency assessment. Therefore, the study primarily developed a model beginning from the theoretical framework assumption into building of a unified comparative model of integrated comparative operational efficiency assessment of airlines. The research design and methodology uses secondary data collection i.e. annual reports and business reports of airlines which are collected from the airlines own website. The huge amount of financial and operational data cannot be collected by using primary data collection method as it would make it practically impossible and expensive. So by employing secondary data collection method saves time, money and a panel data can be accessed and generated easily. Hence, from 100 world major airlines population which are ranked by revenue, simple random sampling is used to select 80 samples airlines for this study. First, the BSC identifies the input and output variables. Next, the DEA model ranks the efficiency measurement, identifies the slack variables and benchmarks the airlines. Third, the SFA model identifies technical efficiency, the random error and technical inefficiency. Finally, the technical efficiency estimates obtained from the two techniques are analyzed comparatively. The research makes further analysis of particular case of the Ethiopian Airlines in relation to the most efficient and inefficient airlines and in comparison of the regional analysis. After extensive tests have been conducted, ‘Balanced Frontier Envelopment’ model is developed. According to this model, it is a paramount to measure efficiency with combining the strength of three models together and gives better results than the previous one or two combined models. The developed and integrated strategic model enhances measuring of the operating technical efficiency of airlines. This model benefit the airlines industry in many ways such as minimizing the cost and maximizing profit through managing technical efficiency which lead into the success of the airlines. From the model perspective, therefore, result of DEA model is much higher than the result of SFA model. DEA model is easier to manipulate than the SFA model because the former does not need the functional form while the later requires a functional form. Furthermore, according to the efficiency finding of the study, first, the European regional airlines are relatively more efficient than the rest of regions in the world. Second, the North America regional airlines are the second more efficient regional airlines in the world. Third, the Ethiopian airlines are the most efficient in Africa when we compare among Egyptair, Kenyan Airways and South African Airways. Fourth, high revenue does not necessarily leads to the technical efficiency of the firm.Business ManagementD.B.L. (Business Leadership

The investment promotion and environment protection balance in Ethiopia's floriculture : the legal regime and global value chain

The thesis examines the balance in the objectives of investment promotion in Ethiopia, i.e. the enhancement of development and well-being in the context of environmental sustainability. The flower sector is used for the purpose of thematic focus due to the tension that exists between the benefits in the enhancement of cut flower exports and the corresponding challenges in labour conditions, environmental compliance standards and in the sustainability of the economic benefits. In spite of the Ethiopian legal framework on sustainable development, many economic actors tend to pursue its weaker interpretation which is further debilitated by gaps in the institutional framework. There is thus the need for caveat against delinking investment promotion towards economic development from social wellbeing and environemntal sustainability which in the flower sector requires environmental mainstreaming (EM) and sustainability impact assessment (SIA) so that illusive economic benefits would not lead to irreversible environmental harm. It is argued that the contribution of investment promotion pursuits in Ethiopia’s flower sector towards sustainable development and rising standards of living depends upon the extent to which the sector moves towards sustainable floriculture which is drastically different from flower export boom that arises from unprotected soil and water resources. Three contradictions permeate the challenges toward sustainable floriculture in Ethiopia. The ownership profile and the marketing niche of flower farms under distress show that domestic-owned farms are the ones that are most severely hit by these challenges. The first contradiction arises from the tension among the three (economic, social and environmental) pillars of sustainable development and the institutional gaps despite laws that protect the environment. The second contradiction relates to the tension between the positive role of technoscience in sectors such as floriculture vis-à-vis its hegemonic features and the potential harm if it is improperly applied in developing countries. The third tension is attributable to the buyer-driven global value chain which requires social and environmental compliance standards in flower growing and meanwhile pushes down the profit margin of flower growers in developing countries like Ethiopia. This not only puts pressure on working conditions and the environment but also renders the economic benefits illusory and unsustainable. The research is based on sociological and legal inquiries, and also includes case study which involves in-depth interviews and on-site observations. The study, inter alia, recommends that hydroponics, integrated pest management and multimodal water sources ought to be encouraged in all new flower farms and future expansion projects. In the absence of such thresholds accompanied by enhanced competitiveness and effective institutional capabilities of regulation and governance, the flower export boom which results from unprotected soil and water resources is economically unsustainable and does not bring about social wellbeing and environmental sustainability

Overview of Sector Transformation Programmes Funded by DFID

This rapid literature review summarizes the existing evidence (mainly programme business cases, annual reviews, logical frameworks, etc.) on selected sector programs run by DFID in priority countries. This report will discuss five key DFID sector programmes that can offer lessons for future potential sector development programmes (e.g. in Pakistan). The programmes discussed here are/were run mainly by DFID in its priority partner countries in the sub-Saharan Africa region: Kenya Market Assistance Programme (MAP), Growth and Employment in States Programme (GEMS), The BEAM Exchange (Building Effective and Accessible Markets), Jobs Compact Ethiopia and Dar es Salaam Urban Jobs Programme. These programmes will be discussed further in detail in section 3)

Effects of Service Quality on Customer Satisfaction in Insurance Company (A Case of Selected Insurance Company Providing Life Insurance, Ethiopia)

This study looks at how three insurance companies that offer life insurance rate their customers' satisfaction with their services. This study also assesses the connection between customer happiness and service quality, including its dimensions. For the aim of the study, primary data were gathered using questionnaires with a five-point Likert scale that were built with consideration for all aspects of service quality, including functional dimensions, image, technical quality, and price. Data were collected from samples of 308 consumers using the convenience sampling technique, and STATA version 15 was utilized to analyze the data using descriptive and multiple linear regression statistics. The results of this study show that customer satisfaction is positively and significantly impacted by characteristics of service quality such as image, responsiveness, dependability, and technological quality. On the other hand, assurance and cost have a negative and significant effect on consumer satisfaction. Additionally, customer retention and satisfaction in the chosen insurance firms are related to overall service quality. When creating a firm's strategy, attributes like image, responsiveness, reliability, assurance, and technological excellence should be given priority because they allow a company to increase customer satisfaction. Keywords: customer satisfaction, service quality, and service quality dimensions DOI: 10.7176/JESD/14-9-01 Publication date:May 31st 202

The role of strategic airline alliances in Africa

This paper looks at the impacts of strategic airline alliances on African aviation. Globally, there has been an on-going trend towards airlines coordinating their activities via strategic alliances and joint ventures. These alliances affect market competition including the quality and costs of the services provided. Despite the economic benefits found in prior analyses of alliances in other markets there has been very limited study of alliance participation by African airlines. Our analysis suggests, among other things, that membership of one of the three global alliances could benefit African airlines, add to their passenger flows, and enhance regional economic integration

Effect of Ownership Structure on Financial Performance: Evidence from Listed Airlines in Africa

Objective: This study empirically examines the impact of ownership structure on the financial performance of listed airlines in Africa. Design/Methods/Approach: The research utilized quantitative techniques to collect secondary data from listed airlines over ten years (2010-2019). Descriptive statistics and multiple regression were used for analysis. Findings: The results revealed that airlines with the majority of private domestic and private foreign ownership showed a significant positive effect on financial performance (ROA and ROE). In contrast, state ownership had an insignificant impact on airlines' financial performance. The study supports the property rights theory, emphasizing the importance of private ownership in airlines. Originality/Value: This study adds to the existing literature by providing evidence on how ownership structure influences financial performance in African airlines, contributing to aviation research. Practical/Policy Implication: The findings suggest that private and foreign investors should consider acquiring controlling airline stakes to enhance financial performance. Policymakers should aim to create flexible laws and regulations that attract domestic and foreign private investors to the aviation sector, potentially fostering improved management practices and policy developments

Experimental Evaluation of a Process Benchmarking Tool in a Green Business Process Management Context

Using a combination of metamodels, ontologies, green performance indicators and metrics, we apply a novel approach in Semantic Business Process Benchmarking to the area of Green Business Process Management (Green BPM). Up to now, process benchmarking has mainly been a manual process; the approach described and empirically evaluated in this paper partially automates the time-consuming and costly process analyses while introducing more flexibility regarding varying terminology, level of abstraction and modeling notation. Also, overviews of literature relevant to the field of Green Semantic BPM and commonly applied metrics in a Green BPM context are given