This Dissertation is submitted in Partial Fulfillment of the Requirement for the Award of a Degree of Masters of Business Administration in Corporate Management (MBA-CM) of Mzumbe University.The general objective of this study was “To find out how the selected key challenges affected the performance of Tanzania Civil Aviation Authority”. Specifically the study examined and determined how air transport safety, security, environmental protection, conservation and capacity affected the performance of Tanzania Civil Aviation Authority. Theoretical and empirical literature reviews were done to delineate the research objectives and identified safety, security, capacity and environmental protection and conservation concepts which were used to formulate the conceptual framework used in this study. Ordinal and qualitative data were collected using questionnaires and interview, entered into a computer, grouped, edited and cleaned finally analysed using descriptive statistics in SPSS software. The results indicated that TCAA performance was very poor because there has been a decline of passengers travelling to or through Da-es-Salaam and cargo transporters are not using air carriers to bring cargo to Dares-Salaam due to poor civil aviation services provided to air carriers using Dar-esSalaam aviation facilities. It was concluded that TCAA face technical and professional challenges and inability to achieve international standards set by ICAO. TCAA is lacking ultra-modern facilities, funds, young energetic engineers, pilots and scientists. But employees have good working experience but have low and out dated technical skills. There are poor capacity i.e. inadequate aviation facilities like large airports, communication, safety, security and environmental protection facilities. In view of this therefore Customers prefer to travel using dully certified and licensed air carrier by TCAA as per ICAO standards. Finally it was recommended that the government must provide sufficient funds for buying aviation facilities, training young technical experts and try as much as it could to follow international standards set by ICAO.