Internal Factor Evaluation Matrix: Strengths Low fares Superior customer service Low labor wages More efficient

reliable planes High commitment to hiring better people Build good brand loyalty Weaknesses Low fares could mean less profit Higher airborne time and percentage of divert Smaller, less heard of airlines Fuel consumption (as a percentage of expenses) rising Very low percentage of full time employees Extra bells &whistles cost company Total Weights 0.1 0.1 0.1 0.075 0.05 0.1 0.1 0.075 0.075 0.1 0.05 0.075 1.00 Ratings 4 4 3 3 3 3 1 2 1 1 2 2 Weighted Scores 0.4 0.4 0.3 0.225 0.15 0.3 0.1 0.15 0.075 0.1 0.1 0.15 2.45

External Factor Evaluation Matrix: Opportunities Increasing demand for air travel Untapped international market potential All the other airlines have much higher rates Many competing airlines have been hurting since 9-11 Increasing use of internet to lower costs & reach out to more people Use of luggage-tracking technology to help in the lost luggage department Threats Many airlines face union contracts Threats of union strikes operating expenses in industry are higher Breakeven load factor is rising Higher security required at airports is causing prices in increase & more customer dissatisfaction Total Weights 0.1 0.125 0.1 0.1 0.075 0.05 Ratings 3 1 3 2 3 1 Weighted Score 0.3 0.125 0.3 0.2 0.225 0.05

0.075 0.075 0.1 0.1 0.1

2 2 3 3 3

0.15 0.15 0.3 0.3 0.3

1.00

2.4