1. Situation Analysis of TransGlobal Airlines (parent company). Use the provided TransGlobal Company Information and Financials to highlight the companys current business environment.

   1. Internal environment: culture, leadership, internal processes, human resources, operations, and financial performance

   2. External environment: competitive, market, regulatory, customers, suppliers, and other relevant stakeholders

Name: TransGlobal Airlines Home Country: USA HQ Location: Miami, FL Size: 40,000 employees Age: began operations in 1951 Customer Segment and Target Market Class: global airliner with dominant U.S. presence Market: global Destinations: 242 destinations serving 52 countries across six continents Market segment: first class, luxury, business class, and economy Global market share: 18% (ranked 2nd, American is number one at 18.6%) U.S. market share: 18.3% (ranked 2nd, Southwest first at 19.1%) Retention: 80% return customers New customer growth: 27% annually (prior to COVID) Passenger kilometers: 278 billion (American is number one at 287 billion) Major Competitors All international and domestic U.S. airlines Company Leadership Publicly held with a board, president, VP admin, CEO, CFO, COO, VP sales, division VPs, subsidiaries Current Financials Annual gross revenues: $20.683 billion Annual net income: $2.099 billion Adjusted earnings per share of $3.22, a 28% increase year-over-year Delivery of 88 new aircraft during the year Number of aircraft in fleet, end of period: 1,062 Average age of aircraft: 13 years Domestic revenue grew 7.7% in the last quarter on 1.6% higher passenger unit revenue (PRASM) and 6% higher capacity. Domestic premium product revenue grew 11% and corporate revenue grew 6%, driven by strength in business and leisure demand through the holiday period. Revenue and margin improved in all domestic hubs, with revenue up 10% in coastal hubs and 6% in core hubs. Atlantic revenue grew 0.8% in the last quarter on 2.4% higher capacity and a 1.6% decline in PRASM, driven almost entirely by foreign exchange rates. Latin revenue grew 6.7% on a 6.3% increase in unit revenue and 0.4% higher capacity. This revenue improvement was driven by continued double-digit unit revenue growth in Brazil and Mexico. Pacific revenue was down 0.5% vs. the prior year on a 4.4% decline in unit revenue primarily due to continued softness in China. This was a 3.2 point improvement vs. the September quarter on improved trends in Japan. Strategic Plans and Goals The board of directors has recently approved a comprehensive plan identified as TransGlobal 2030. The plan is the result of eight months of data collection, customer focus groups, leadership retreats, and employee input. The TransGlobal 2030 vision is to lead the industry in three critically important areas: safety, excitement, and stewardship (SES). This SES vision has been translated into a collection of guiding principles and goal statements: SES Principles o We will always treat our customers with respect. o We will value our employees and business partners. o We will innovate to provide our customers with the most forward-thinking and exciting travel experience. o We will build lifelong relationships with our customers. o We will protect our planet. SES Goals o Safely re-introduce and promote the MAX 737 aircraft1 . o Expand the fleet of regional aircraft with capacities below 70. o Upgrade the reservation and ticketing experience, including smartphone apps and integration with apps associated with lodging, ground transportation, and attractions. o Achieve top-10 status in the 2030 Worlds Best Workplaces rankings (currently not ranked in top 100). o Reach net-zero carbon footprint by 2075. o Accelerate adoption of fuel-efficient aircraft and alternative fuels. o Expand use of carbon offset measures. o Improve our Airlines.com safety rating from 5 stars to 7 stars. o Build brand awareness and customer loyalty. o Address workplace inequities and build an inclusive culture. o Train every employee in the basics of FAAs SAS (Safety Assurance System) via 2-hour webbased training. 1 The popular 737 aircraft has been the subject of considerable controversy and safety concerns worldwide. ASSETS (in millions) Current Assets Cash and cash equivalents: $1,268 Accounts receivable: $1,256 Fuel inventory: $321 Expendable parts and supplies inventories, net: $229 Prepaid and other expenses: $559 Total current assets: $3,629 Other Assets: Property and equipment: $13,776 Operating lease right-of-use assets: $2,476 Goodwill: $4,304 Identifiable intangibles: $2,272 Cash restricted for airport construction: $280 Other noncurrent assets: $1,657 Total other assets: $24,765 Total assets: $28,394 LIABILITIES AND STOCKHOLDERS' EQUITY Current Liabilities Current maturities of long-term debt: $806 Finance leases: $200 Current maturities of operating leases: $352 Air traffic liability: $2,251 Accounts payable: $1,437 Accrued salaries and related benefits: $1,628 Loyalty program deferred revenue: $1.416 Fuel card obligation: $ 324 Other accrued liabilities: $474 Total current liabilities: $8,888 Noncurrent Liabilities Long-term debt: $3,000 Finance leases: $904 Pension, postretirement Related benefits: $3,719 Loyalty program deferred revenue: $1,544 Noncurrent operating leases: $2,329 Deferred income taxes: $641 Other noncurrent liabilities: $610 Total noncurrent liabilities: $12,747 Total liabilities: $21,635 Stockholders' equity: $6,759 Total liabilities and stockholders equity: $28,394 Margins Operating margin: 14.08% Net profit margin: 10.14% Operating cash flow margin: 41.7% Debt to equity: 3.20 ROE: 31.04% ROA: 7.39% Receivables turnover: 16.47% Aircraft capacity: 98% Current ratio: 0.408 Quick ratio: 0.2839