Northwest Arkansas Democrat-Gazette
Southwest reaches 737 Max jet deal
Carrier places order for 100 Boeing planes with option to purchase 155 more
Southwest Airlines Co. ordered 100 Boeing Co. 737 Max 7 jets and said it would purchase as many as 155 more, cementing a half-century relationship and ending a public flirtation with Airbus SE.
The 100-plane order, valued at about $10 billion before customary discounts, gives a boost to the slow-selling, 150-seat Max 7, the smallest plane available in the line. Southwest also switched 70 orders for the Max 8 to the 7, the airline said in a statement Monday. The 155 options are for either variant.
Southwest chose to continue its lengthy history of flying only the 737 — valuing economics and simplicity in its fleet of more than 700 aircraft — after hinting for more than a year that it might switch to the Airbus A220. A shift would have dealt a heavy blow to Boeing as it attempts to rebuild confidence in the Max after two deadly crashes caused a nearly two-year global grounding.
“Southwest Airlines has been operating the Boeing 737 series for nearly 50 years, and the aircraft has made significant contributions to our unparalleled success,” Chief Executive Officer Gary Kelly said in the statement. “Today’s commitment to the 737 Max solidifies our continued appreciation for the aircraft.”
A deep slump in travel demand from the covid-19 pandemic had presented an opportunity for Southwest to consider whether to add another aircraft to its fleet, he had said.
Southwest’s first 30 new Max 7 aircraft are scheduled to be delivered next year. The planes will use engines from CFM International, a venture of General Electric Co. and Safran SA.
Dallas-based Southwest now holds 349 firm orders for the Max 7 and 8, with options for 270 more aircraft through 2031. It will receive 28 Max 8 jets this year, including nine from lessors, and will end 2021 with 729 total aircraft.
The airline wants to retire the 462 Boeing 737-700 aircraft in its fleet over the next 10 to 15 years, and needs a smaller plane on some routes than its current 175-seat 737-800 and Max 8 models. One of the chief advantages of the newer Max line is the fuel efficiency of its engines.