Mediating Role of Route Characteristics on Effect of Low-Cost Carriers on the Airline Market in Kenya

Abstract

Studies show that low-cost carriers have gained 15.2% market shares while enplanement had increased by 38% following their emergence. Whereas frequency is directly influenced by airlines’ key factor such as turn-time, it, on the other hand, influences directly other airline market parameters. This proposes a mediation possibility. However, the mediating role of frequency on the relationship between turn-time on carriers’ market share, and the effect of low-cost carrier in Kenya was still unknown. The purpose of this study, therefore, was to investigate the mediating role of route characteristics on the effect of low-cost carriers on the airline market in Kenya. The specific objective of the study was to determine the effect of the mediating frequency on the relationship between turn-time and carriers’ market share. Using panel data of 2 airlines to capture both time-series and cross-sectional elements over the 72 months period, this paper will illustrate that frequency partially and off-the-scale significantly mediates turn-time-carrier’s market share relation. Path regression analysis is used to track the influence of the mediating route characteristics.