ou are a former Navy officer and fighter pilot, and you are now the controller of a division of TransGlobal Airlines, a large organization that operates a fleet of corporate jets for charter at severa
• Name:
• Location: Orlando, FL
• Size: 98 employees
• Age: began operations in 1988
Customer Segment and Target Market
• Market: Florida and nearby destinations
• Destinations: eight (the Bahama Islands; Savannah, Georgia; Atlanta, Georgia; Tampa, Florida; Fort
Myers, Florida; Miami, Florida; Tallahassee, Florida; and New Orleans, Louisiana)
• Market segment: tourists and business
• Aircraft capacities: 12–50 seats
• Customer segment: vacationers, tourists, business travelers
• Retention: 40% repeat customers
• Seat occupancy average: 62% (middle of industry benchmark data)
• Average customer fare: $249 USD
Major Competitors
• Delta Connection
• American Eagle
• Sun Country
• Frontier
Company Leadership
Privately held, with a board, president, VP admin, CFO, COO, VP sales
Company Strategy and Direction
As a smaller player, the company is more of a follower than a leader; however, the new president has a desire to
shake things up. The image of the company as cheap transportation is no longer sufficient, and the leadership
team seeks to demonstrate that even a small company can be an innovation leader. They hope to do this by
emphasizing the potential benefits of agile problem solving and a lean and clean working environment.
These 10-year goals were adopted in 2015; they were reaffirmed in 2019 shortly before the arrival of the new
president:
• Demonstrate adaptability, flexibility, and speed in decision making and innovation
• Build the best workforce; be a winning team
• Do the right thing; provide excellence in customer service
• Enjoy the short run; invest in the long run
Current Financial Highlights
• Annual revenues: $26-27 million
• Annual growth YoY: 3%
• Gross profit margin: 33%
• Net profit margin: 0.2%
• Aircraft in fleet: 40
• Average age of aircraft: 18 years (25 years of useful life is typical)
• See financial statements for more information
Background
• The company is known as a value leader.
• In 2016, the company sold its ownership in a regional hotel chain, resulting in substantial cash holdings.
• The company has strong business relationships with area employers in the theme park industry.
• The company president is new this year; prior experience has been heavily influenced by organizational
transformation initiatives.
• Turnover among employees is higher than many airline companies, but average for the central Florida
economy; maintenance employees are increasingly more difficult to find and retain; overtime is common
in the maintenance department.
• Wage levels in the Orlando area are growing, resulting in upward pressure in compensation.
• Customer feedback received that is at or above industry benchmarks (at industry benchmarks 60th
percentile or higher; positive feedback):
o Short wait times at counter
o Ease of modifying reservations
o Cost
o Overall value
• Customer feedback received below industry midpoint (negative feedback):
o Airplane cleanliness
o Amenities
o Food and beverages
o In-flight noise
Internal Process Highlights
• Within the last 30 days, an investment and joint venture was established with SITA Horizon software
system, including an industry-standard customer portal and a hospitality industry interface functionality.
• Bookkeeping is integrated with the new SITA system; an external accounting firm will still be used for
audits.
• HR function is provided by a consortium partner in the local area (outsourced).
• On-ground operations teams rated fair against industry-wide efficiency standards.
Human Resource Highlights
• Employees with a high school diploma or higher: 95%
• Employees with a post-secondary degree or diploma: 60%
• Average turnover rate: 18% annually
• Internal training offered:
o Regulatory refresher courses (as needed, with supervisor approval)
o Quality and Customer Service Principles (self-study
