Assessment of Factor Influencing Passengers’ Choice of Low Cost Carrier:A Case of Fastjet

Timanywa, Jofta M. (2017) Assessment of Factor Influencing Passengers’ Choice of Low Cost Carrier:A Case of Fastjet. Masters thesis, The Open University of Tanzania.

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Abstract

Low cost carrier (LCC) is the new airline business model to operate in Tanzania and Africa in general. The emergence and growth of LCCs has altered the nature of competition for short-haul routes in the aviation industry. In Africa, particularly Tanzania, this new airlines business model is at early stage of development while many of LCCs in America and European countries have reached maturity. Despite the steady growth of LCC in Tanzania, substantial numbers of complaints from passengers regarding operations of the airline have been reported. There is lack of successful explanation of the factors influencing passengers to select this airline business model in Tanzania. This study was designed to assess the factors that influenced passenger’s selection of low cost carrier in Tanzania. The research used survey method to collect data from passengers flying with Fastjet (LCC) at Mwanza airport in Tanzania. A sample of 118 passengers was selected using systematic random sampling. This study found that price, safety and service quality has influence on passengers’ selection of low cost carrier. Therefore Fastjet passengers are not driven, solely, by price as suggested by some economic models other factors such as on-time performance, short flying time, and safety plays important role in selection of airline. It is clear that any airline using price alone as a competitive advantage cannot be sustainable as other factors have become predominant in Tanzania. The study recommend that, taking into account growing competition from full services network airlines particularly Air Tanzania, price alone cannot be the main strength for Fastjet to survive in Tanzania business market in long run. In the future business value can be stronger than price; hence the airline should focus on quality and provide services that are more memorable.

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