Oswald Mhlanga, Jacobus Steyn and John Spencer
The airline industry is structurally challenged by its very nature, because of high overhead and capital costs. This is further exacerbated by macro-predictability and…
Abstract
Purpose
The airline industry is structurally challenged by its very nature, because of high overhead and capital costs. This is further exacerbated by macro-predictability and micro-uncertainty, thereby making it difficult for airlines in South Africa to attain operational efficiency. The purpose of this study is to identify drivers of operational efficiency and their impacts on airline performances in South Africa.
Design/methodology/approach
An extensive data collection using primary and secondary sources enabled the researchers to gather data on all the airlines operating in South Africa, for the period of 2012-2016, on a variety of parameters. A two-stage empirical analysis was carried out, which involved estimation of operational efficiencies during the first stage by using data envelopment analysis (DEA) and determination of performance drivers during the second stage by using a two-way random-effects generalised least squares regression and also a Tobit model.
Findings
From the study, it is clear that two structural drivers, namely, “aircraft size” and “seat load factor”, and two executional drivers, namely, “low cost business model” and “revenue hours per aircraft”, significantly impacted (p < 0.05) positively on airline efficiencies in South Africa. To improve efficiency, management should first concentrate on the drivers that can be changed in the short-term (executional drivers) and later focus on the drivers that require long-term planning (structural drivers). However, among the structural drivers, only “aircraft families” had a negative impact on airline efficiencies, whilst among executional drivers, only “block hours” negatively impacted on airline efficiencies.
Research limitations/implications
Despite the importance of this study, it is not free of limitations. Firstly, because of the small size of the industry, fewer airlines and lack of detailed data, the study could not consider other important factors such as optimal routing and network structure. Secondly, although non-aeronautical revenues have become increasingly important in airline management, they were not included in this study. Further studies may investigate the impact of these factors on airline efficiency.
Practical implications
The results have potential policy implications. Firstly, as the domestic airline market in South Africa is too small to operate with a smaller aircraft efficiently, airlines that intend to make use of smaller aircraft should first identify niche markets where they can have a route monopoly, such as SA Airlink. Secondly, as block time negatively affected airline efficiency, airlines can undertake schedule adjustments to reduce block time and thus improve technical efficiency.
Originality/value
This paper is a first attempt to identify drivers of operational efficiency in the airline industry in South Africa. The results indicate that DEA is a useful tool to identify factors impacting airline efficiency and could improve airline performances in South Africa.
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Herman Albertus Viviers, Jacobus Paulus Fouché and Gerda Marié Reitsma
The purpose of this paper is to evaluate the usefulness of an educational game to develop soft skills (also known as pervasive skills), from the perspectives of three groups of…
Abstract
Purpose
The purpose of this paper is to evaluate the usefulness of an educational game to develop soft skills (also known as pervasive skills), from the perspectives of three groups of role-players (student participants, student committee members and employer companies). The game was designed to provide students with the opportunity to develop soft skills and to determine whether students applied the pervasive skills required by the South African Institute of Chartered Accountants.
Design/methodology/approach
Action research was conducted according to a parallel convergent mixed-method research design. Both qualitative and quantitative data were gathered using questionnaires and focus group interviews to determine the usefulness of the educational game.
Findings
All three groups perceived the educational game to be effective in requiring students to apply the full spectrum of soft/pervasive skills. Although all the pervasive skills were perceived to be present in the game, teamwork, communication (listening and verbal) and time management skills were perceived to be most prominent, while written communication, professionalism and ethical awareness were found to be less prominent. Overall, this game can be recommended as an effective and innovative teaching method that can positively contribute to the pervasive skills development of accounting students.
Originality/value
The need to deliver well-rounded accounting graduates demonstrating core technical and soft skills (or pervasive skills and competencies) calls for new and innovative teaching methods. Accounting educators and programmes are continuously challenged regarding which methods to apply to meet these outcomes and substantiate their usefulness.
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THE College of Librarianship is best considered on its own terms, as an institution unique in the history and present pattern of British library education, but its significance…
Abstract
THE College of Librarianship is best considered on its own terms, as an institution unique in the history and present pattern of British library education, but its significance and probable future development can best be assessed if two external factors are kept in mind.