Stated preference (SP) experiments are becoming an increasing popular survey methodology
for investigating air travelers’ choices. Analysis of this behavior, which is an element of the
demand prediction, helps for a better future planning and development of competing airlines.
In this thesis, emphasis is stressed on the stated preferences of passengers in choosing between
low cost carriers (LCC) and full service carriers (FSC). Binary logit and probit model
and latent class model were employed on primary data collected from departing air passengers
at Eros airport and Hosea Kutako International airport in Windhoek - Namibia, to model
passengers’ stated preferences and examine the determinants of carrier choice between LCC
and FSC in Namibia. Major findings show that: airfare, age, income and purpose of travel are
significantly important with respect to passenger choice. Furthermore, we observed that passengers
have different preferences for different destination regions be it domestic, regional
or international. For domestic and regional flights (short haul) they prefer LCC, while for
international flights (long haul) they opted for FSC. In addition, majority of the passengers
were travelling for business purpose, hence their tickets were bought by their respective employers.
Most passengers indicated that they were willing to fly LCC if it was available in
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Namibia because of it’s low fares. There was an indication that air tickets were not affordable
and these are a big concern to passengers. Presumably, if ticket prices can come come down
or introduce a LCC in Namibia then many will consider flying. This study concluded that,
based on the interviewed passengers’ profiles, the best and appropriate carrier in Namibia is
a low cost carrier. Introducing a LCC in Namibia might be a viable alternative which may
ensure sustainability.