2
Identification
TransGlobal Airline has strong financial position because the company can go far by
analyzing the scoreboard. It is pretty evident that change from monopolistic to a competitive
market will ultimately affect the financial position of the company. TransGlobal Airlines faces
many risks that however the two basic risks that will be clarify are proceeded with rent
installments of the planes regardless of not being used and fluctuating costs in fuel, builds
expenses and carbon impression. we have enjoyed monopoly status on all domestic routes under
the current government (A. Slessor, 2011). Explaining these risks will give a lay out where the
company will go in the future years both operational and being strategic as well.
Evaluation
The impact would be high for this situation. Because of pandemic, the air travel and the
portability are stale. There are no inflows, no worldwide flights, consequently the income
streams can evaporate. There is a need to find elective powers because of the variances and the
unpredictable cost of fuel. It likewise obliges the inventory. The impact of this would be high but
the likelihood would be low because of it. There needs to be enough investment in this to find
alternative options of fuels.
Mitigation
The maintenance and the lease payments for all the aircrafts are continuing. Proper
Financial management and proper Asset-Liability Management is necessary to mitigate this risk.
The company would be better off with long term decision and to make the right move to make
sure the company is not going to go down the drain. But with how airplane companies are now
things may be high in cost of getting things that’s why they have raised their pricing on tickets.
