Write a report with your performance evaluation of the three companies involved in the acquisition.

Specifically, you must address the following rubric criteria:

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

2. TransGlobal Airlines Company 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: $13.2 billion Annual net income: $1.5 billion Adjusted earnings per share of $2.31, a 30% 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 forwardthinking 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 web-based training. 1 Note: The popular 737 aircraft has been the subject of considerable controversy and safety concerns worldwide. ASSETS: Current Assets: Cash: $2,882 Cash equivalents: $1,565 Accounts receivable: $2,854 Fuel inventory: $730,592 Expendable parts and supplies inventories, net: $521,463 Prepaid expenses: $1,262 Other expenses: $1,406 Total current assets: $8,249 Property and equipment: $31,311 Other Assets: Operating lease right-of-use assets: $5,626 Goodwill: $9,781 Identifiable intangibles: $5,167 Cash restricted for airport construction: $1,136 Other noncurrent assets: $3,759 Total other assets: $24,969 Total assets: $64,529 LIABILITIES AND STOCKHOLDERS' EQUITY Current Liabilities: Current maturities of long-term debt: $2,287 Finance leases: $1,518 Current maturities of operating leases: $1801 Air traffic liability: $5,116 Accounts payable: $3,266 Accrued salaries and related benefits: $3,701 Accrued salaries related benefits: $3,287 Loyalty program deferred revenue: $3,219 Fuel card obligation: $ 1,075 Other accrued liabilities: $1,078 Total current liabilities: $20,204 Noncurrent Liabilities: Long-term debt: $8,873 Finance leases: $8,253 Pension, postretirement: $8,344 Pension, postretirement Related benefits: $9,163 Loyalty program deferred revenue: $3,509 Noncurrent operating leases: $5,294 Deferred income taxes: $1,478 Other noncurrent liabilities: $1,387 Total noncurrent liabilities: $28,885 Stockholders' equity: $15,440 Total liabilities: $64,529 Stockholders' equity: $60,266 Margins Gross profit margin: 37.84% Operating margin: 14.078% Net profit margin: 10.14% Cash flow margin: 30.35% Debt to equity: .0782 ROE: 31.03% ROA: 7.08% Inventory turnover: 23.35% Receivables turnover: 16.47% Aircraft capacity: 98% Current ratio: 0.681 Quick ratio: 0.3824