Catherine Air (CA) is a small regional airline connecting regional Australian cities. Which two of the following would most likely be classified as a strategic risk for CA: (Note: multiple answers) are possible.

a. An internal risk analysis report identifies the industry will undergo a 10% reduction in total domestic traffic.

b. The booking system has been overdue for a maintenance overhaul for two years.

c. A new start-up airline has commenced operations on similar domestic routes.

d. Maintenance spending as a proportion of sales has reduced by 15% in the last two years