Question: The project is adapted from the Chapter 4 Case Study dealing with North South Airline In January 2 0 1 2 , Northern Airlines merged

The project is adapted from the Chapter 4 Case Study dealing with NorthSouth Airline In
January 2012, Northern Airlines merged with Southeast Airlines to create the fourth largest U.S.
carrier. The new NorthSouth Airline inherited both an aging fleet of Boeing 727-300 aircraft
and Stephen Ruth. Stephen was a tough former Secretary of the Navy who stepped in as new
president and chairman of the board.
Stephens first concern in creating a financially solid company was maintenance costs. It was
commonly surmised in the airline industry that maintenance costs rise with the age of the
aircraft. He quickly noticed that historically there had been a significant difference in the
reported B727-300 maintenance costs (from ATA Form 41s) in both the airframe and the engine

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