The Effective Contracts in Ground Handling: Ground Handling Services in Tanzanian Context

Abstract

This study was conducted purposely to investigate the underlying issues affecting effective contract involved in the provision of ground handling service in Tanzania's aviation sector emanating from contract types, stakeholder collaboration, performance criteria, regulatory compliance, and validity of the contract. A combination of qualitative and quantitative research methodologies through mixed method approach was used. The hypotheses were aligned with existing theories and empirical studies have led to the adoption of questionnaires for data collection. About 101 respondents obtained from 10 airports/ locations in within Tanzania which contribute to about 89% of total traffic volumes including number of flights, passenger, and cargo volumes were purposively and stratified selected to participate in structured questionnaires.  The data were analyzed using ANOVA and Binary Logistic Regression in Microsoft Excel while qualitative data was performed by Dedoose for the identification of significant relationships between effective contract (dependent) and contract types, stakeholder collaboration, performance metrics, regulatory compliance, as well as contract validity (independents). The binary logistic regression results indicated significant positive relationships between four out of five variables (contract types, performance metrics, regulatory compliance, and contract validity) while stakeholder collaboration had statistically insignificant impact on contract effectiveness, indicating that while collaboration is important, it does not directly influence the outcomes of ground handling contracts in Tanzania’s aviation sector. incorporating automated systems for performance tracking, ensuring clear dispute resolution mechanisms, and providing training for personnel involved in contract management have been given as recommendation to ensure effective contract. The study was concluded by the implementation of world accepted performance metrics, periodic contract reviews, and adherence to regulatory standards can result into effective contract in ground handling in Tanzania.