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...Airlines and Southeast Airlines in 2005. The resulting company needs to be managed in an efficient manner. As part of the review of costs process Stephen Ruth, the CEO has noticed that there has been a significant difference I the costs of maintenance between the two companies' aircraft. The company needs to be financially viable, and as the two companies both had the same aircraft it is important to determine how and why there are different maintenance costs.
This is an important difference, but without knowing why there is a difference management are not best placed to assess the best strategies for a company which wants to reduce or restrain costs. Southeast have the lower maintenance costs, but they also have the younger aircraft when measured by average age, whereas Northern Airlines have higher cost as well...