On February 12 Peg Jones, vice president for operations and maintenance, called into Stephen’s office and asked to study the issue. Specially, Stephen wanted to know whether the average fleet age was correlated to direct airframe maintenance costs, and whether there was a relationship between average fleet age and direct engine maintenance costs. Peg was to report back by February 26 with the answer, along with quantitative and graphical descriptions of the relationship. Peg’s first step was to have her staff construct the average age of Northern and Southeast B727-300 fleets, by quarter, since the introduction of that aircraft to service by each airline in late 1993 and 1994. The average age of each fleet was calculated by first multiplying the total number of calendar days each aircraft had been in service at the pertinent point in time by the average daily utilization of the respective fleet to total fleet hours flown. The total fleet hours was then dividend by the number of aircraft in service at that time, giving the age of the “average” aircraft in the fleet. The average utilization was found by taking the actual total fleet hours flown on September 30, 2011, from northern and Southeast data, and dividing by the total days in service foe all aircraft at that time. The average utilization for Southeast was 8.3 hours per day, and the average utilization foe Northern was 8.7 hours per day, because the available cost data were calculated for each yearly period ending at the end of the first quarter, average fleet age was calculated at the same points in time. The fleet data are shown in the following table. Airframe cost data and engine cost data are both shown paired with fleet average age in that table below. Prepare Peg jones response to Stephen Ruth, you have to use the point of view of a consultant having the following data, Northern Airline Data Airframe Cost Engine Cost Average Year per Aircraft per Aircraft Age (hrs.) 2003 51.80 43.49 6512 2004 54.92 38.58 8404 2005 69.70 51.48 11077 2006 68.90 58.72 11717 2007 63.72 45.47 13275 2008 84.73 50.26 15215 2009 78.74 79.60 18390 Southeast Airline Data Airframe Cost Engine Cost Average Year per Aircraft per Aircraft Age (hrs.) 2003 13.29 18.86 5107 2004 25.15 31.55 8145 2005 32.18 40.43 7360 2006 31.78 22.10 5773 2007 25.34 19.69 7150 2008 32.78 32.58 9364 2009 35.56 38.07 8259 Your expert answer has to include: 1. Northern Airlines—Airframe Maintenance Cost: 2. Northern Airlines—Engine Maintenance Cost: 3. Southeast Airlines—Airframe Maintenance Cost: 4. Southeast Airlines—Engine Maintenance Cost. 5. Comparison: 6. Overall result.
On February 12 Peg Jones, vice president for operations and maintenance, called into Stephen’s office and asked to study the issue. Specially, Stephen wanted to know whether the average fleet age was correlated to direct airframe maintenance costs, and whether there was a relationship between average fleet age and direct engine maintenance costs. Peg was to report back by February 26 with the answer, along with quantitative and graphical descriptions of the relationship. Peg’s first step was to have her staff construct the average age of Northern and Southeast B727-300 fleets, by quarter, since the introduction of that aircraft to service by each airline in late 1993 and 1994. The average age of each fleet was calculated by first multiplying the total number of calendar days each aircraft had been in service at the pertinent point in time by the average daily utilization of the respective fleet to total fleet hours flown. The total fleet hours was then dividend by the number of aircraft in service at that time, giving the age of the “average” aircraft in the fleet. The average utilization was found by taking the actual total fleet hours flown on September 30, 2011, from northern and Southeast data, and dividing by the total days in service foe all aircraft at that time. The average utilization for Southeast was 8.3 hours per day, and the average utilization foe Northern was 8.7 hours per day, because the available cost data were calculated for each yearly period ending at the end of the first quarter, average fleet age was calculated at the same points in time. The fleet data are shown in the following table. Airframe cost data and engine cost data are both shown paired with fleet average age in that table below. Prepare Peg jones response to Stephen Ruth, you have to use the point of view of a consultant having the following data, Northern Airline Data Airframe Cost Engine Cost Average Year per Aircraft per Aircraft Age (hrs.) 2003 51.80 43.49 6512 2004 54.92 38.58 8404 2005 69.70 51.48 11077 2006 68.90 58.72 11717 2007 63.72 45.47 13275 2008 84.73 50.26 15215 2009 78.74 79.60 18390
Southeast Airline Data Airframe Cost Engine Cost Average Year per Aircraft per Aircraft Age (hrs.) 2003 13.29 18.86 5107 2004 25.15 31.55 8145 2005 32.18 40.43 7360 2006 31.78 22.10 5773 2007 25.34 19.69 7150 2008 32.78 32.58 9364 2009 35.56 38.07 8259
Your expert answer has to include: 1. Northern Airlines—Airframe Maintenance Cost: 2. Northern Airlines—Engine Maintenance Cost: 3. Southeast Airlines—Airframe Maintenance Cost: 4. Southeast Airlines—Engine Maintenance Cost. 5. Comparison: 6. Overall result.
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