Partial fulfillment for the award of Master of Business Administration

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A competitive transport service is essential for a country’s participation in the domestic and international commerce within the current global village arena. That while the economic conditions in the Kenyan deregulated aviation markets are relatively well functioning, these appear substantially different from the deregulated aviation markets of more developed economies.
The commercial conduct of major players in the Kenyan aviation markets and the infrastructure at Jomo Kenyatta International Airport (JKIA), questions whether there is indeed real deregulation and level playing field for all and potential carriers in the Kenyan aviation market or the presence and guidance of identifiable strategic moves in their operations.
Lessons from other countries and the advent established carriers to the Kenyan market, call for a strategic re-orientation of the aviation market lest Kenyan operators despite the enviable infrastructure and geographical positioning are reduced to mere spectators in the dynamic aviation arena.
This thesis seeks to explore, understand and identify probable obstacles to the competitiveness of the Kenyan domestic aviation markets and assess the effect of their of their removal on airlines operating in Kenya.
The research indicates that to be competitive and to be able to sustain her current regional hub dominance status, the government, should and must enhance operational and regulatory infrastructure, as a deliberate action to being competitive and build a sustainable aviation industry that would take advantage of Kenya’s geographical positioning. Kenyan aviation players are also implored upon to revisit their operational and competitiveness if indeed they wish to exploit and enhance their regional dominance more so in the current drive towards globalization and alliance formations. This status is neither permanent nor guaranteed.