MBA 620 TransGlobal Airlines Information Location, Size, and Age of the Firm • 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 e ...

1. MBA 620 TransGlobal Airlines Information
Location, Size, and Age of the Firm
• 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

2. 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

3. 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.

4. 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, incl uding
smartphone apps and
integration with apps associated with lodging, ground
transportation, and attractions.
o Achieve top-10 status in the 2030 World’s 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 FAA’s SAS (Safety
Assurance System) via 2-hour web-
based 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

5. • 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

6. • 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

7. • Quick ratio: 0.2839
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Module Four Business Environment Analysis Report
Guidelines and Rubric
Overview
In your role as controller of a division of TransGlobal Airlines,
you are responsible for assessing the possible acquisi �on of the
two
iden�fied small airlines in the Caribbean specializing in
chartered flights for luxury vaca�ons using light aircra� (60
passengers or
less).
One of the important steps in this acquisi�on process is
analyzing, understanding, and iden�fying all the external and
internal
elements that can affect the organiza�on’s performance, and, as
businesses are greatly influenced by their environment, all the
situa�onal factors that determine how day-to-day circumstances

8. impact firms. You can assess situa�onal factors by performing
a
business environment analysis. The analysis entails assessing
the level of threat or opportunity these situa�onal factors might
present. These evalua�ons are later translated into the decision-
making process. The analysis helps align strategies with the
firm’s
environment. You will use the PESTEL method to perform this
analysis.
Prompt
Use the informa�on provided to you in the TransGlobal
Airlines Informa�on document to perform a business
environment analysis
using the PESTEL method. Your task is to analyze the internal
and external business environment of TransGlobal Airlines by
iden�fying the impact of each PESTEL factor on the business
environment.
Specifically, you must address the following rubric criteria:
1. Iden�fy one poli�cal factor that can affect the company’s
business environment and explain any poten�al impact on
acquisi�on strategy.
2. Iden�fy one economic factor that can affect the company’s
business environment and explain any poten�al impact on
acquisi�on strategy.

9. 3. Iden�fy one sociological factor that can affect the company’s
business environment and explain any poten�al impact on
acquisi�on strategy.
4. Iden�fy one technological factor that can affect the
company’s business environment and explain any poten�al
impact on
acquisi�on strategy.
5. Iden�fy one environmental factor that can affect the
company’s business environment and explain any poten�al
impact on
acquisi�on strategy.
6. Iden�fy one legal factor that can affect the company’s
business environment and explain any poten�al impact on
acquisi�on
strategy.
Guidelines for Submission
Submit a 1- to 2-page Word document using double spacing, 12-
point Times New Roman font, and one-inch margins. Sources
should be cited according to APA style. Consult the Shapiro
Library APA Style Guide for more informa�on on cita�ons.
Criteria Exemplary (100%) Proficient (90%)
Needs Improvement
(70%)

10. Not Evident (0%) Value
Module Four Business Environment Analysis Report Rubric
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Poli�cal Exceeds proficiency

11. in an excep�onally
clear, insigh�ul,
sophis�cated, or
crea�ve manner
Iden�fies and clearly
explains the
poten�al impact of
one relevant poli�cal
factor on the
acquisi�on strategy
Shows progress
toward proficiency,
but with errors or
omissions; areas for
improvement may
include iden�fying a
valid poli�cal factor
or providing a

12. reasonable
explana�on of its
impact on the
company’s
acquisi�on strategy
Does not a�empt
criterion
15
Economic Exceeds proficiency
in an excep�onally
clear, insigh�ul,
sophis�cated, or
crea�ve manner
Iden�fies and clearly
explains the
poten�al impact of
one relevant
economic factor on

13. the acquisi�on
strategy
Shows progress
toward proficiency,
but with errors or
omissions; areas for
improvement may
include iden�fying a
valid economic
factor or providing a
reasonable
explana�on of its
impact on the
company’s
acquisi�on strategy
Does not a�empt
criterion
15

14. Sociological Exceeds proficiency
in an excep�onally
clear, insigh�ul,
sophis�cated, or
crea�ve manner
Iden�fies and clearly
explains the
poten�al impact of
one relevant
sociological factor on
the acquisi�on
strategy
Shows progress
toward proficiency,
but with errors or
omissions; areas for
improvement may
include iden�fying a

15. valid sociological
factor or providing a
reasonable
explana�on of its
impact on the
company’s
acquisi�on strategy
Does not a�empt
criterion
15
Technological Exceeds proficiency
in an excep�onally
clear, insigh�ul,
sophis�cated, or
crea�ve manner
Iden�fies and clearly
explains the
poten�al impact of

16. one relevant
technological factor
on the acquisi�on
strategy
Shows progress
toward proficiency,
but with errors or
omissions; areas for
improvement may
include iden�fying a
valid technological
factor or providing a
reasonable
explana�on of its
impact on the
company’s
i i� t t
Does not a�empt

17. criterion
15
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acquisi�on strategy
Environmental Exceeds proficiency
in an excep�onally
clear, insigh�ul,
sophis�cated, or
crea�ve manner
Iden�fies and
explains clearly the
impact of one
relevant
environmental factor

18. on the acquisi�on
strategy
Shows progress
toward proficiency,
but with errors or
omissions; areas for
improvement may
include iden�fying a
valid environmental
factor or providing a
reasonable
explana�on of its
impact on the
company’s
acquisi�on strategy
Does not a�empt
criterion
15

19. Legal Exceeds proficiency
in an excep�onally
clear, insigh�ul,
sophis�cated, or
crea�ve manner
Iden�fies and
explains clearly the
impact of one
relevant legal factor
on the acquisi�on
strategy
Shows progress
toward proficiency,
but with errors or
omissions; areas for
improvement may
include iden�fying a
valid legal factor or

20. providing a
reasonable
explana�on of its
impact on the
company’s
acquisi�on strategy
Does not a�empt
criterion
15
Ar�cula�on of
Response
Exceeds proficiency
in an excep�onally
clear, insigh�ul,
sophis�cated, or
crea�ve manner
Clearly conveys
meaning with correct

21. grammar, sentence
structure, and
spelling,
demonstra�ng an
understanding of
audience and
purpose
Shows progress
toward proficiency,
but with errors in
grammar, sentence
structure, and
spelling, nega�vely
impac�ng readability
Submission has
cri�cal errors in
grammar, sentence
structure, and

22. spelling, preven�ng
understanding of
ideas
10
Total 100%
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