Planning and the SWOT Analysis (1)

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Apr 3, 2024

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Purpose The purpose of this project is to introduce you to the planning process and to complete a SWOT analysis to determine a company’s strengths, weaknesses, opportunities, and threats. Using the information gathered to complete the SWOT, you will begin to build a Strategic Plan identifying and discussing the company’s goals and objectives. Outcome Met by Completing This Assignment  Employ effective planning processes to develop strategies, goals, and objectives to enhance organizational performance and sustainability. Instructions and Case Background

Note: Before starting work on Project I, you must carefully read the Project 1 rubric. You are requested to complete Project 1 in the role of a recent business degree graduate, newly hired by Silver Airways. Your manager has requested your assistance in conducting a SWOT analysis and developing the goals and objectives for a strategic plan. The strategic plan is necessitated by Silver Airways' CEO requesting an assessment of the airline’s ability to continue to grow and the subsequent steps it needs to take to make that happen. You will use the course materials for Weeks 1 – 3 and your research findings based on Silver Airways' links below. This information will allow you to analyze the current state of Silver Airways to determine its strengths, weaknesses, opportunities, and threats. You will complete a SWOT table identifying the strengths, weaknesses, opportunities, and threats you identified for Silver Airlines. Based on your SWOT table, you will then develop and explain your goals and their related objectives.

Your manager has informed you of the following facts: Florida-based Silver Airways recently announced its acquisition of Seaborne Airlines, headquartered in Puerto Rico. Expanding its flight routes within the Caribbean makes the company the highest-volume airline to the Bahamas and the Caribbean. In addition to its Bahamas and Caribbean flights, Silver Airways serves the southeast and a few northeast states. Your manager has provided you with the links found below and indicated that route expansion, a new fleet of aircraft, and the acquisition of Seaborne Airlines should be considerations in your analysis. Of course, the focus of your analysis is Silver Airways and not Seaborne Airlines. Your analysis, SWOT table, goals, and objectives must be supported by a logical and well-reasoned evaluation of the facts ascertained from the course materials and links provided. Research Links  Silver Airways  Seaborne Airlines  Silver Airways-Seaborne Airways Acquisition

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 Silver Airways Announces Major Strategic Growth Developments and New Leadership You may do additional research related to Silver Airways to enhance your SWOT analysis, SWOT Table, and goals and objectives. Note: Your report must be based on the results of your own research. This means that you will research and draw your own conclusions, which must be supported by your independent research and the course materials. You are precluded from using any existing SWOT analysis, SWOT Table, and goals and objectives ascertained from anyone else's source material (e.g., internet sites, for-pay websites, existing documents, video resources, and the like). You MUST do your own analysis.

Introduction This document’s purpose is to identify the internal strengths and weaknesses of Silver Airways and external opportunities and threats (social, political, economic, legal environmental) that would affect them. The information from the SWOT analyses is then used to set clear and realistic goals and objectives based on the strengths and weaknesses of the company, which are also identified later in the document (Bruton, n.d.). By examining Silver Airways' strategic advantages, such as its codeshare agreements, niche geographic focus, and their modern fleet, against its vulnerabilities like financial instability and a limited route network, Silver Airways can gain insight into their position in the current market. From there they can explore potential avenues for growth, including expanding service areas, leveraging technological advancements, and diversifying into cargo operations, while also acknowledging significant external challenges such as rising fuel costs, sustainability pressures, and intense market competition. SWOT Table Strengths Weaknesses Codeshare agreements and partnerships along with its acquisition of seaborn (Business Wire, 2018) Financial stability. The airline was delinquent on lease payments owed to the county since 2021 risking eviction at the Fort Lauderdale airport (Cooke, 2023). Silver Airways is at risk of disappearing as the novel coronavirus crisis has impacted operations (Pallini, 2020) Florida's first airline still operating today (Business Wire, 2018) Small inventory of aircraft Targeted geographical region offering a Caribbean niche. (Business Wire, 2018) Limited network of routes with a small customer base (Business Wire, 2019) The acquisition of new eco-friendly ATR-600s that feature the widest cabin and premium features (Business Wire, 2018) Dependence on code sharing and partnerships to expand. Smaller crafts that can land where most big commercial planes cannot. Opportunities Threats Flying cargo (Singh, 2022) Rising fuel cost (GMI, 2022) Expanding codeshare relationships (Singh, 2022) Pressure/cost to make air travel more sustainable (Chamber of commerce, 2023) Expanding its service areas High competition (Momen, 2023)

Technological developments (Momen, 2023) Global Recession (Momen, 2023) Strengths With Silver Airways having a historical presence in Florida, primarily servicing most routes within Florida and to the Bahamas their strengths can potentially provide a strategic advantage in the regional airline industry. Silver Airways has codeshare agreements with United, JetBlue, and Avianca, and has interline agreements with American, Delta, Air Canada, Alaska Airlines, All Nippon Airways, Bahamasair, Hahn Air, and Azul (Business Wire, 2018). These agreements with larger airlines allow Silver Airways to sell seats on flights operated by other airlines, allowing them to extend their reach beyond its regional network. This can enhance customer convenience and loyalty. Its targeted geographical region within Florida and routes to the Caribbean, capitalizes on a niche market with consistent demand for travel to vacation destinations, which can position Silver Airways as a preferred choice for leisure travel in these routes. With also being the first commercial airline founded in Florida they have a deep understanding of its core market, allowing them to tailor services to meet the unique needs of travelers within and around Florida. Also, the acquisition of new eco-friendly ATR-600 aircraft underscores the airline's commitment to sustainability and customer comfort. These planes not only reduce the environmental impact through improved fuel efficiency but also offer passengers a more comfortable and enjoyable flying experience with features like the widest cabin in the regional aircraft segment. This strategic investment in modern, eco-friendly aircraft aligns with growing consumer preferences for sustainable travel options and enhances the airline's competitive edge by offering premium attributes in customer service. Weaknesses Silver Airways' weaknesses stem from a combination of financial challenges, operational constraints, and strategic dependencies that limit its competitive edge and growth potential. Financial instability is a critical concern, highlighted by delinquency on lease payments, which not only risks its

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operational base at Fort Lauderdale Airport but also signals deeper liquidity and profitability issues. The impact of the COVID-19 pandemic exacerbated these financial strains, threatening the airline's survival by severely disrupting its operations and demand for air travel. With a small inventory of aircraft, Silver Airways faces limitations in scaling its operations or quickly adapting to market changes. This small fleet, coupled with a limited network of routes, confines the airline to a relatively small customer base, making it difficult to diversify risk or capitalize on new market opportunities. Moreover, its heavy reliance on code sharing and partnerships for expansion exposes Silver Airways to the strategic decisions and competitive pressures faced by its larger partners. This dependency can constrain the airline's flexibility in adjusting its business model or exploring new markets independently, further challenging its ability to navigate the competitive and dynamic aviation industry. Opportunities Silver Airways has many opportunities that could facilitate its efforts to achieve its goals and enhance its market position. The potential for flying cargo represents a significant opportunity to diversify its revenue streams and the clients they represent, especially given the increased demand for cargo services following global supply chain challenges. Passenger travel has been proven to be volatile in the past view years and with the expansion of international trade, the demand for cargo transportation is only increasing. Further expanding its codeshare relationships can also provide a strategic advantage, allowing Silver Airways to broaden its network reach, offer more destinations to its passengers, and access a larger customer base without the need for substantial fleet expansion. This approach aligns well with the airline's current strategy and can enhance connectivity and customer options. Additionally, expanding its service areas, whether through entering new markets or enhancing existing routes, opens avenues for attracting new customer segments and responding to underserved demand, particularly in the Caribbean and Southeastern U.S., where Silver has established a niche. Lastly, technological developments offer Silver Airways opportunities to improve operational efficiency, reduce costs, and

enhance customer experience. Investing in innovative technologies, such as eco-friendly aircraft or digital customer service platforms, can differentiate Silver Airways in a competitive landscape, making it more resilient and adaptable to the changing demands of the aviation industry. Threats Silver Airways faces several external threats that could impact its operational and financial performance. The rising fuel costs, as highlighted in global markets insight (2022), directly affect profitability for airlines, particularly smaller carriers with less financial flexibility to absorb such increases or hedge fuel prices effectively. The pressure to make air travel more sustainable, noted by the Chamber of Commerce in 2023, represents both a financial and operational challenge. Investments in more eco- friendly technologies and practices are essential for regulatory compliance and customer expectations but can be costly and complex, especially when capital is limited. High competition from other airlines continues to be a significant threat, as Silver Airways must compete not only with other regional carriers but also with major airlines (United and Spirit) expanding their domestic networks and low-cost carriers entering its markets. Lastly, the potential for a future global recession could dramatically reduce demand for air travel due to the reduced spending power of individuals, particularly in the discretionary and tourism-driven markets that Silver Airways serves. Such economic downturns like the fall out of COVID-19 can have a disproportionate impact on smaller, niche-focused airlines, making them more vulnerable to shifts in consumer spending and travel habits. STRATEGIC GOAL 1 : Expand the customer base through an increase in available routes in more regions. Silver Airways wants to continue to expand in to the Caribbeans and nearby areas to continue its momentum after the acquisition of seaborne airlines. Through the acquisition of Seaborne and its operations, Silver can offer more comprehensive service options, improve connectivity for passengers, and create a more extensive network that leverages existing relationships and routes to optimize flight

schedules and increase operational efficiency. Silver Airways can now market itself as a leading airline servicing Florida and neighboring islands. Objective 1 : Expand reach through codeshare with Brazil's Azul (Hardee, 2024). Attaining a codeshare agreement with Brazil's Azul will further expand Silver Airways reach into the Brazilian market via Azul airlines and vice versa into Florida. Objective 2 : Offer more nonstop flights throughout Florida. By streamlining the process for customers traveling locally, Silver Airways can enhance the customer experience, offer more daily flights, and potentially boost their market presence. Objective 3 : Expand services to 9 more airports by 2034. Due to the increasing demand and travel particularly in Florida to nearby areas, being able to expand into more airports can allow Silver Airways to expand its routes including revenue to support further expansion. Strategic Goal 2 : The acquisition of more modern ecofriendly aircraft to serve more customers. To stay in business Airlines must remain compliant with regulations. The plan to acquire up to 50 ATR-600s will provide Silver Airways with the ability to remain complaint and a leader in ecofriendly aircraft operating out of the US. Objective 1 : Convert all aircraft to ATR-600 series or better by 2034. Silver Airways can significantly reduce its carbon footprint and operating costs which aligns with global trends toward sustainability and can potentially help attract ecofriendly customers. Objective 2 : Establish a team to ensure compliance and safety with the new ecofriendly initiatives. By employing a dedicated safety team that specializes in ecofriendly initiatives this can ensure that Silver Airways stays compliant with regulations and can alongside align it with its strategic goals. Objective 3 : Inform customers of the new initiative and market accordingly. By upgrading its fleet, Silver Airways can leverage these improvements to enhance its brand image, differentiate itself from competitors, and potentially command higher fares based on improved customer experience.

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Strategic Goal 3 : Diversify revenue by developing cargo operational capabilities. This strategic goal not only promises to open new revenue channels but also enhances the airline's resilience against passenger demand fluctuations. Objective 1 : Partnering with large and small domestic service providers like Amazon. Establishing these partnerships with local businesses, e-commerce platforms, and other airlines can create a comprehensive cargo network that can efficiently serve both existing and emerging markets. Objective 2 : Partition some of the newly acquired fuel efficient ATR-600 to provide lower cost options for potential clients, undercutting local competition. By utilizing a low-price strategy Silver Airways can potentially make it hard for new entrants to compete, reduce the buyers' bargaining power and can force out less efficient rivals (Brunton, n.d.). Objective 3 : Get an understanding of the market to identify and target specific markets where demand for cargo services is growing. Utilize existing relationships and relationships acquired through seaborne airlines to potentially establish international trade routes with existing routes. Conclusion To conclude, the SWOT analysis of Silver Airways uncovers the dynamic and evolving nature of the aviation industry and their plans to navigate them. The strategic goals provide an outline of the direction Silver Airways intend to take to take advantage of potential opportunities and to combat their weaknesses. The objectives are designed to guide the organization to action to meet those strategic goals. Through these strategic initiatives, Silver Airways aims to solidify its market position, enhance operational efficiency, and ensure long-term sustainability and growth in the competitive airline industry.

References Cooke, Z. (2023, April 13). Silver Airways’ $1M lease debt threatens operations at Fort Lauderdale Airport. AirlineGeeks. https://airlinegeeks.com/2023/04/13/silver-airways-1m-lease-debt- threatens-operations-at-fort-lauderdale-airport/ Ludwig, S. (2024, January 11). The most important issues facing the aviation industry . U.S. Chamber of Commerce. https://www.uschamber.com/infrastructure/aviation/the-most-important-issues- facing-the-aviation-industry Singh, J. (2022, February 14). Silver Airways looks to the future after raising $50 million. Simple Flying. https://simpleflying.com/silver-airways-future-50mn/ Pallini, T. (2020, March 25). The history of Silver Airways, Florida’s regional carrier which says it’s in “dire need” of a bailout to survive the coronavirus crisis. Business Insider. https://www.businessinsider.com/coronavirus-history-of-silver-airways-floridas-regional-airline- 2020-3 Momin, A. (2023, September 30). SWOT analysis of the airline industry . PESTLE Analysis. https://pestleanalysis.com/swot-analysis-of-the-airline-industry/ Bruton, B., Bruton, L. (n.d.). Principles of Management. Lumens Learning. Business Wire. (2017, August 1). Silver Airways announces Major Strategic Growth Developments and new leadership . Silver Airways Announces Major Strategic Growth Developments and New Leadership | Business Wire. https://www.businesswire.com/news/home/20170801006341/en/Silver-Airways-Announces- Major-Strategic-Growth-Developments-and-New-Leadership Business Wire. (2018, April 23). Silver Airways acquires Seaborne Airlines to create leading independent airline serving the Caribbean, Bahamas, Florida, and beyond . Silver Airways Acquires Seaborne Airlines to Create Leading Independent Airline Serving the Caribbean, Bahamas, Florida, and

Beyond | Business Wire. https://www.businesswire.com/news/home/20180423005900/en/Silver-Airways-Acquires- Seaborne-Airlines-to-Create-Leading-Independent-Airline-Serving-the-Caribbean-Bahamas- Florida-and-Beyond

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Planning and the SWOT Analysis (1)

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