GeoJournal of Tourism and Geosites Year XI, no. 1, vol. 21, May 2018, p.158-173 ISSN 2065-0817, E-ISSN 2065-1198 Article no. 21113-278 IMPACTS OF THE MICRO ENVIRONMENT ON AIRLINE PERFORMANCES IN SOUTHERN AFRICA: MANAGEMENT PERSPECTIVES Oswald MHLANGA* University of Mpumalanga, Hospitality Department, Private Bag X11283, Mbombela, South Africa, e-mail:
[email protected] Jacobus STEYN Univ1ersity of Technology, Department of Tourism and Event Management, Cape Peninsula PO Box 652, Cape Town, South Africa, e-mail:
[email protected] John SPENCER University of Technology, Department of Tourism and Event Management, Cape Peninsula PO Box 652, Cape Town, South Africa, e-mail:
[email protected] Abstract: The purpose of this study was to determine the impacts of the micro environment on airline performances in southern Africa. A mixed method research design was followed. Questionnaires were distributed at selected airlines to 154 key airline personnel. Factor analysis was used to identify the dimensions of micro environmental factors impacting on airline performances. The results indicated that competitive rivalry, the bargaining power of suppliers and customers significantly impacted (p<0.05) negatively on the aviation industry. Consequently, the high number of LCCs has created overcapacity and several suppliers can squeeze airlines, something that has stifled the region’s tourism prospects. Key words: Tourism, airline performances, LCCs, aviation industry, southern Africa * * * * * * INTRODUCTION Air transport is a fundamental driver of the tourism industry (Bieger & Wittmer, 2006). It is a precondition for travel, since it facilitates mobility and the movement of tourists from their place of origin to their destination and back (Campbell, 2014).