Effect of Fleet Management practices on Competitive Advantage of the Domestic Airlines in Kenya

Abstract

This study focused on the effects of fleet management on the competitive advantage of domestic airlines in Kenya. The aviation industry is evolving rapidly hence, fleet managers are expected to move with speed in addressing the contemporary changes such as fluctuations in consumer needs. The paradigm shifts have direct impacts on the nationwide competitive landscape. However, Kenyan airline industry as a whole is at risk of losing competitive edge to rivals whenever the fleet management styles employed by the industry players do not accurately match the consumer needs. The study, therefore, aimed at exploring the correlation between fleet management practices and competitive advantage. This study was guided by the following specific objectives: First, to establish the influence of aircraft acquisition and maintenance on the competitive advantage of the domestic airlines. Secondly, to determine the influence of fuel management on the competitive advantage of the domestic airlines, thirdly, to assess the influence of fleet management systems on the competitive advantage of the domestic airlines and fourth, to evaluate the influence of human resource management on the competitive advantage of the domestic airlinesin Kenya. The study was anchored on resource-based view, replacement theory and competitive advantage theory. This study employed an explanatory research design. Census method was used to explore the views of 208 managers and executives involved in fleet management activities at 10 randomly selected airlines. The respondents answered questionnaire relating to the empirical observations on the relationship between the airlines’ management and their competitiveness. The results were coded into SPSS for subsequent data analysis through descriptive statistics and inferential statistics. Regression analysis was performed on the dependent variable and each of the independent variables. The study demonstrated positive correlation between aircraft acquisition and maintenance (p value = 0.0001), as well as, fuel management (p value = 0.0001) and competitive advantage. On the other hand, fleet management system (p value = 0.0001) and human resource management (p value = 0.0001) were both insignificant. Therefore, it was determined that a firm's competitive advantage increased depending on the amount of investment it made in new aircraft and fuel management techniques. To compete favourably with their rivals, airlines need upgrade their fleet management systems and human resource practices. The airline may need to make investments in pertinent information technologies to support its requirements. The study suggests that staff at the airport should undergo frequent refresher training, workshops, and seminars with the goal of improving their skills in their specialized fields. Future research should focus on the impacts ofsuch inventions on the ability of the domestic airlines to increase market share at the global level.