Southwest CEO says lawsuit by pilots could curtail growth

Southwest Airlines’ growth plans may be jeopardized by a lawsuit filed by its pilots union over flying Boeing’s newest 737, CEO Gary Kelly said this week.

The Southwest Airlines Pilots Association, representing 8,300 aviators, on Monday asked a federal court to block the carrier from flying the 737 Max until the jet is listed in a new contract. The two sides have been negotiating a labor pact for over four years.

Development of the new Boeing aircraft is ahead of schedule, and its early arrival — as soon as March — could give pilots added leverage in contract talks. If a deal isn’t reached and approved first, the world’s largest 737 operator risks seeing the jet sit idle or having another carrier replace it as the Max’s initial operator.

“It will harm Southwest if we cannot receive future aircraft deliveries,” Kelly told reporters after the company’s annual shareholder meeting in Chicago on Wednesday. “It won’t put us in jeopardy of shrinking the airline, but we won’t be able to grow.”

Pilots depend on an expanding fleet so first officers can be promoted to captain positions, Kelly said. About 400 pilots, joined by flight attendants and mechanics, picketed outside the meeting.

“This all becomes a nonissue with a contract,” said Jon Weaks, the union’s president. “Not being able to attract and retain quality pilots will constrain his growth.”