Track: Information Systems and Information Technology

Abstract

The technological innovations that are increasingly available to air travel have significantly grown over the years since the deregulation of the airline industry within South Africa and the African continent. Within the low cost carrier sector of the airline industry, the competition is tough and longevity of the low cost airline is prompted by the innovative ideas that direct customers to the “no frills” sector of air travel. This research study aims to determine the impact of customer focused innovative technology implementations on the passenger numbers of a low cost carrier airline in South Africa. The research focuses on one domestic low cost carrier known to be technologically forward thinking and consistently uses advanced technology in the competitive market within which it operates. An overview of the business models used by low cost carriers across the world is explored with a focus on the selected carrier in South Africa. The data is time series in nature where the granger causality statistical model is employed to assess how the customer technology projects affect the customer numbers. The results indicate that there is a causal relationship over time between the implementation of technology and the growth of passenger numbers.