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Strengths
- Variety of planes/ excessive assets
- East coast dominance
- Financial recognition of instability
- Customer satisfaction
- Competition
- New CEO
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Weaknesses
- Excessive assets
- High overhead
- Unprofitable flights
- Grew too fast
- Location of hubs
- Resignation of CEO
- Poor employee morale
- Bankruptcy
- Poor customer service
- Non aggressive competition
- Breakdown of merger with United
- No contingency plan or vision
- Plane crashes
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Opportunities
- Point to point flight patterns
- Guaranteed money after bankruptcy
- Partnership
- Governmental aid
- Increased consumer confidence
- Stronger economy
- Increase in bond rates
- Decrease in interest rates
- New technology
- Chapter 11 bankruptcy
- Selling assets
- New government regulation
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SO
- Size efficiency (S1, O1)
- Reorganization with new CEO (S6, O10)
- Possible financial gains (S3, O2, O4, O7, O8)
- Expansion of East Coast dominance west with point to point flights (S2, O1)
- Merging with another company (S3, S5, O3)
- Sell bonds (S3, O7, O8)
- Expand into freight industry (S1, O3, O6, O11)
- Recruit CEO and executives (S6, O3, O10)
- Regulations can promote fair competition (S5, O12)
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WO
- Eliminate or restructure hubs (W5, O1, O11)
- Save money by flying point to point and free up money by selling assets to increase liquidity (W1, W2, O1, O11)
- Create strategic planning standards (W11, W12, O10, O3)
- Use point-to-point flights to increase profitability (W3, W5, O1)
- New technology will make business more consumer friendly (W9, O9)
- Stronger economy will make breakeven more attainable (W2, O6)
- Asset sales will restructure company size (W4, O11)
- Restructuring after bankruptcy can promote employee morale and positive leadership (W6, W7, W8, W10, O2)
- Can recover from bankruptcy through governmental aid, consumer or employee purchased bonds (W8, O4, O5, O7, O8, O12)
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Threats
- Economy
- Demand for air travel
- Web conferencing
- International threats
- War with Iraq
- Terrorism
- Oil / Fuel cost
- Labor
- Union strikes
- ALPA cap flights
- Government
- Competition
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ST
- Recognition of poor economy/cut throat competition with limited customers (S3, S4, S5, T1, T5, T6, T12)
- Fluctuating fuel prices indirectly proportional to competition and customer satisfaction (S1, S4, S5, T5, T7)
- New CEO can improve labor and union relations (S6, T8, T9)
- Limited flight selection and regulations (S4, T10, T11)
- Union more willing to negotiate (S4, T8, T9)
- New CEO can promote East Coast air travel through business deals by discounting air fare to discourage web conferencing (S2, S6, T2, T3)
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WT
- With expense increase, profits decrease and assets are harder to maintain (W1, W3, T7, T8, T12)
- Poor employee morale can promote strike, which results in poor customer service falter (W7, W9, T9)
- Terrorists hijackings (W13, T6)
- Lack of aggressive competition results in lack of market share (W10, T2, T12)
- High overhead, possible warfare, terrorism, international threats, and struggling economy decreases demand for air travel, which results in unprofitable flights (W2, W3, T1, T2, T4, T5, T6, T10, T11)
- Hub expansion in a geographically close market decreased need for flying (W4, W5, T2)
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