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Southwest Airlines first to buy the Max
Source: Bloomberg News |
December 14, 2011, Wednesday
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Print Edition
Print Edition
SOUTHWEST Airlines Co has become the first carrier to order Boeing Co's 737 Max, purchasing 150 of the more-efficient planes and 58 other 737 jets with a combined value of at least US$17.6 billion.
Max deliveries will start in 2017, and the deal includes options for 150 more, Southwest said yesterday.
Airlines typically buy at a discount to the list price, which is US$84.4 million for the 737-800 model and hasn't been announced for the Max.
Upgraded engines on the Max are supposed to help cut fuel use as much as 12 percent compared with the current 737, Chicago-based Boeing said.
Airbus SAS decided in December 2010 to equip its rival A320 with new engines, giving the European planemaker a head start in signing up customers.
Buying 737s extends Southwest's status as the world's largest operator of the plane and its commitment to flying only Boeing aircraft. It is the fourth time Southwest has served as the initial customer for a version of the 737, the industry's most widely flown jetliner.
Engine efficiency is important to Southwest, because fuel spending has surpassed labor to become the carrier's largest cost after a 59 percent jump in prices from five years ago.
Except for 88 Boeing 717s, Southwest's fleet of 699 jets consists entirely of 737s. The biggest low-fare airline acquired the 717s when it bought AirTran Holdings Inc in May and has said it has no plans to keep the smaller planes when they come off leases at the end of 2024.
CFM International, a partnership of General Electric Co and France's Safran SA, is developing a customized engine for the 737 Max.
Max deliveries will start in 2017, and the deal includes options for 150 more, Southwest said yesterday.
Airlines typically buy at a discount to the list price, which is US$84.4 million for the 737-800 model and hasn't been announced for the Max.
Upgraded engines on the Max are supposed to help cut fuel use as much as 12 percent compared with the current 737, Chicago-based Boeing said.
Airbus SAS decided in December 2010 to equip its rival A320 with new engines, giving the European planemaker a head start in signing up customers.
Buying 737s extends Southwest's status as the world's largest operator of the plane and its commitment to flying only Boeing aircraft. It is the fourth time Southwest has served as the initial customer for a version of the 737, the industry's most widely flown jetliner.
Engine efficiency is important to Southwest, because fuel spending has surpassed labor to become the carrier's largest cost after a 59 percent jump in prices from five years ago.
Except for 88 Boeing 717s, Southwest's fleet of 699 jets consists entirely of 737s. The biggest low-fare airline acquired the 717s when it bought AirTran Holdings Inc in May and has said it has no plans to keep the smaller planes when they come off leases at the end of 2024.
CFM International, a partnership of General Electric Co and France's Safran SA, is developing a customized engine for the 737 Max.
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