INTERNAL ANALYSIS OF ATLANTIC AIRWAYS Justas Kubilius ilvinas

INTERNAL ANALYSIS OF ATLANTIC AIRWAYS Justas Kubilius Žilvinas Mickus Giovanni Crabu Martynas Tamulionis

MISSION, VISION AND STRATEGY Mission: Ø Transport people, mail and cargo by air back and forth Faroe Islands Vision: Ø Enable Faroese people to travel around the world Ø Provide best service possible Ø Remain the preferred airline carrier in the Faroe Islands Strategy: Ø Cheaper and simpler airfaires Ø Improve route network trough Scandinavian countries Ø A dedicated aircraft for charter flights between markets outside the Faroe Islands will be phased out

VALUE CHAIN

PORTFOLIO ANALYSIS

FINANCIAL ANALYSIS Air Greenland 2014 2013 2012 Solvency 58 % 57 % 53 % Liquidity 145 % 129 % 122 % Atlantic airways 2014 2013 2012 Solvency 42 % 51 % 49 % Liquidity 112 % 162 % 147% Iceland air 2014 2013 2012 Solvency 43 % 42 % 39 % Liquidity 83 % 94 %

FINANCIAL ANALYSIS • Operating margin of Atlantic Airways is 4, 5% • Return on equity of Atlantic Airways is 9, 3% • Safety margin of Atlantic Airways is 40, 49% • Capacity ratio of Atlantic Airways is 1, 72 DKK • Fixed assets as total assets of Atlantic Airways is 66, 39%

BUSINESS MODEL CANVAS

VALUE PROPOSITION Atlantic Airways offers rescue and search missions; cargo and mail services and it is only airway company that offers air traveling back and forth from Faroe Islands

STRENGHTS & WEAKNESSES Strenghts: Ø Well-known brand name Ø Alliances with other firms Ø Airplanes with low CO 2 emission Ø Increased revenue (Helicopter activity, passenger revenue) Ø Punctuality Weaknesses: Ø Narrow flight routes from Faroe’s Islands Ø Limited financial resources

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