Southwest defers smallest Boeing 737 Max, adds larger planes
Southwest delayed orders for 23 of Boeing’s 737 Max 7 aircraft, casting doubt on the future of the smallest Max variant even as the discount carrier said it would buy more of a larger model of the upgraded single-aisle jet. Pushing most of its Max 7 deliveries out until 2023 and 2024 probably means that Southwest is trying to decide whether it wants to keep any of its pending orders for the plane, said George Ferguson, a Bloomberg Intelligence analyst. The airline, Boeing’s largest 737 customer, will take only seven Max 7 jets in 2019 -- down from the 15 that had been expected as of October. “When your most important customer, and the one you probably built the airplane for, doesn’t want it anymore, it’s a bad day,” Ferguson said. “When they defer the 7 out that far, it means they are trying to figure out if they ever want the 7.” Southwest also converted options to firm orders for 40 Max 8 planes, a larger model, giving life to CEO Gary Kelly’s statements last month that the carrier would buy more planes because of the recent reduction in US corporate tax rates. Taking the additional Max 8 planes in 2019 and 2020 means Southwest will receive some of that model every year through 2025.<br/>
https://portal.staralliance.com/cms/news/hot-topics/2018-01-04/unaligned/southwest-defers-smallest-boeing-737-max-adds-larger-planes
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Southwest defers smallest Boeing 737 Max, adds larger planes
Southwest delayed orders for 23 of Boeing’s 737 Max 7 aircraft, casting doubt on the future of the smallest Max variant even as the discount carrier said it would buy more of a larger model of the upgraded single-aisle jet. Pushing most of its Max 7 deliveries out until 2023 and 2024 probably means that Southwest is trying to decide whether it wants to keep any of its pending orders for the plane, said George Ferguson, a Bloomberg Intelligence analyst. The airline, Boeing’s largest 737 customer, will take only seven Max 7 jets in 2019 -- down from the 15 that had been expected as of October. “When your most important customer, and the one you probably built the airplane for, doesn’t want it anymore, it’s a bad day,” Ferguson said. “When they defer the 7 out that far, it means they are trying to figure out if they ever want the 7.” Southwest also converted options to firm orders for 40 Max 8 planes, a larger model, giving life to CEO Gary Kelly’s statements last month that the carrier would buy more planes because of the recent reduction in US corporate tax rates. Taking the additional Max 8 planes in 2019 and 2020 means Southwest will receive some of that model every year through 2025.<br/>
