Liquidation of airlines’ impact on airport businesses? The case of King Shaka International Airport

Abstract

Background: The liquidation of airlines such as Comair and SA Express affected foot traffic at King Shaka International Airport (KSIA). Businesses in airports rely on airlines to bring foot traffic to the airport. The closure of the airlines had an impact on the business at KSIA.

Objectives: This study focused on understanding the consequential effects of airline liquidations on the businesses in the KSIA.

Method: The study adopted a concurrent mixed research methodology where a survey and interviews were used as research strategies. As the population of the study was small, a census comprising 37 businesses and 4 representatives from the Airport Company of South Africa (ACSA) was used.

Results: The study found that the liquidation of the airlines reduced foot traffic; consequently, most businesses in the airport suffered reduced revenues causing some to close and others to struggle. The study also revealed that a considerable number of businesses were not adequately informed by ACSA about the impending liquidation of the airlines, potentially impacting their ability to prepare for the consequences of such an event. The study also found that businesses in the airport did not receive the operational support they needed from ACSA to manage operational challenges during this period of disruption.

Conclusion: Among the recommendations made, the study recommends that ACSA adopts a hybrid till model unique to South African airports, particularly KSIA.

Contribution: The study recommends a stronger tenant support and collaboration strategy to help affected businesses in times of airline difficulties.