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Southwest Said to Be in Talks to Order Boeing’s New 737 MAX Jet
Southwest Airlines Co. (LUV), the world’s largest operator of Boeing Co. (BA)’s 737 jet, is in talks to buy the upgrade MAX model with more-efficient engines, three people familiar with the matter said.
An order of 100 to 150 of the new jets is under discussion, and the purchase may include some of the current 737-800 planes, said one of the people, none of whom was authorized to speak publicly. While Boeing hasn’t announced a price for the MAX, 150 of the 737-800 variant would have a list value of $12.7 billion.
This would be Dallas-based Southwest’s first jet order since buying competitor AirTran Holdings Inc. in May and would keep the carrier an all-Boeing operator. Boeing said in July it would offer the MAX, seven months after Airbus SAS (EAD) decided to put new engines on its top-selling A320 single-aisle aircraft.
Southwest is “about the most successful narrow-body user in history,” said Richard Aboulafia, vice president of consultant Teal Group in Fairfax, Virginia. “This would be about the best customer the MAX program could get.”
Brandy King, a Southwest spokeswoman, declined to comment. Jim Albaugh, head of Boeing’s commercial plane business, declined to discuss Southwest, citing the Chicago-based company’s policy of not commenting about customers.
The first order for the 737 MAX should be signed before Christmas, Albaugh said in an interview late yesterday, without elaborating on the buyer’s identity. “It’ll be with a great airline that we’ve done business with before,” he said.
MAX Commitments
Boeing has said it has more than 700 commitments for the MAX, which is supposed to enter commercial service in 2017 and burn 10 percent to 12 percent less fuel than existing 737s. Toulouse, France-based Airbus has 1,450 commitments for the re- engined A320neo, including about 1,250 firm orders.
Southwest Chief Executive Officer Gary Kelly said in August that the airline supported Boeing’s decision to put new engines on the 737 and wasn’t in talks with other planemakers. The 737 family is the world’s most widely flown jetliner.
Southwest, the biggest discount carrier, operates an all- Boeing fleet of 699 jets, 88 of them the smaller 717 model acquired with the AirTran purchase. The 717s are leased through 2024, and Southwest has said it has no plans to keep them beyond that date.
Flying one plane type has been a pillar of Southwest’s strategy of simplifying operations to curb costs. Southwest had 286 jets from the 737 family on order as of Oct. 19, according to data by the carrier.
Southwest knew about Boeing’s decision to re-engine the 737 before it was made public at a July news conference with AMR Corp. (AMR)’s American Airlines, Kelly said in August.
“It would not surprise us if this deal places Southwest at the front of the line to receive the new plane,” Howard Rubel, an analyst at Jefferies & Co. in New York, wrote today in a note to clients. Rubel, who rates Boeing as “buy,” said the two companies have a “strong relationship.”
The Wall Street Journal reported the talks yesterday between Southwest and Boeing.
fonte: http://www.bloomberg...html?cmpid=yhoo
Southwest Airlines Co. (LUV), the world’s largest operator of Boeing Co. (BA)’s 737 jet, is in talks to buy the upgrade MAX model with more-efficient engines, three people familiar with the matter said.
An order of 100 to 150 of the new jets is under discussion, and the purchase may include some of the current 737-800 planes, said one of the people, none of whom was authorized to speak publicly. While Boeing hasn’t announced a price for the MAX, 150 of the 737-800 variant would have a list value of $12.7 billion.
This would be Dallas-based Southwest’s first jet order since buying competitor AirTran Holdings Inc. in May and would keep the carrier an all-Boeing operator. Boeing said in July it would offer the MAX, seven months after Airbus SAS (EAD) decided to put new engines on its top-selling A320 single-aisle aircraft.
Southwest is “about the most successful narrow-body user in history,” said Richard Aboulafia, vice president of consultant Teal Group in Fairfax, Virginia. “This would be about the best customer the MAX program could get.”
Brandy King, a Southwest spokeswoman, declined to comment. Jim Albaugh, head of Boeing’s commercial plane business, declined to discuss Southwest, citing the Chicago-based company’s policy of not commenting about customers.
The first order for the 737 MAX should be signed before Christmas, Albaugh said in an interview late yesterday, without elaborating on the buyer’s identity. “It’ll be with a great airline that we’ve done business with before,” he said.
MAX Commitments
Boeing has said it has more than 700 commitments for the MAX, which is supposed to enter commercial service in 2017 and burn 10 percent to 12 percent less fuel than existing 737s. Toulouse, France-based Airbus has 1,450 commitments for the re- engined A320neo, including about 1,250 firm orders.
Southwest Chief Executive Officer Gary Kelly said in August that the airline supported Boeing’s decision to put new engines on the 737 and wasn’t in talks with other planemakers. The 737 family is the world’s most widely flown jetliner.
Southwest, the biggest discount carrier, operates an all- Boeing fleet of 699 jets, 88 of them the smaller 717 model acquired with the AirTran purchase. The 717s are leased through 2024, and Southwest has said it has no plans to keep them beyond that date.
Flying one plane type has been a pillar of Southwest’s strategy of simplifying operations to curb costs. Southwest had 286 jets from the 737 family on order as of Oct. 19, according to data by the carrier.
Southwest knew about Boeing’s decision to re-engine the 737 before it was made public at a July news conference with AMR Corp. (AMR)’s American Airlines, Kelly said in August.
“It would not surprise us if this deal places Southwest at the front of the line to receive the new plane,” Howard Rubel, an analyst at Jefferies & Co. in New York, wrote today in a note to clients. Rubel, who rates Boeing as “buy,” said the two companies have a “strong relationship.”
The Wall Street Journal reported the talks yesterday between Southwest and Boeing.
fonte: http://www.bloomberg...html?cmpid=yhoo
Editado por lichmann, 08 de dezembro de 2011 - 20:49 .
