Turnaround strategies for SADC airlines with specific reference to Air Zimbabwe

Abstract

The financial and economic performance of SADC airlines has been poor for some time. The governments, citizens of SADC countries and donor agencies are no longer tolerating the existence of the loss making foreign currency intensive, prestige national airlines. This dissertation seeks to find ways to turnaround the poor performance of SADC airlines. The dissertation focused on the three basic turnaround strategies of cost leadership, differentiation and focus. The McKinsey 7-S framework was used to analyse the strengths and weaknesses of SADC airlines. The external (operating) environment was also analysed to determine the opportunities and threats. A study was carried out of some successful turnarounds of British Airways and Scandinavian Airline System. Singapore International Airlines, one of the most successful airlines in the world, was also studied in detail. The study showed that the strategy of cost leadership while focusing on domestic and regional operations was most likely to result in optimal performance of SADC airlines