Skyways, Inc. recently celebrated its 34th year at Mid-America Regional Airport. Although the company is basically a fixed base operation, its main source of revenue has been aircraft sales and support to commuter, regional, and small overseas airlines. During the 1960s, the company concentrated on purchasing packages of phased-out U.S. airline aircraft such as DC-3s, DC-6s, and Convairs, and found secondary markets for them overseas. For example, in 1965 the company purchased 20 DC-3 aircraft from Frontier Airlines and placed 14 of them with Air Manila in the Philippines. Several similar programs were coordinated in the sixties—a Boeing 727 with complete support package was placed with Air Mali in West Africa.

1. Do you think Skyways, Inc. should seriously consider entertaining an airline servicing contract at this time?
Why?
2. In his meeting with air carrier personnel, what are some of the discussion items Burns should bring up before the bids are let?
3. How should Burns present his proposal to Skyways' Management? Should he wait until the bids are let?