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Southwest converts options for 40 more 737 Max 8s
Flight Global ^ | 02 January, 2018 | Ghim-Lay Yeo

Posted on 01/03/2018 6:01:39 AM PST by Freeport

Southwest Airlines has exercised options for 40 Boeing 737 Max aircraft, and deferred the majority of its 737 Max 7 orders to 2023 and beyond.

The Dallas-based low-cost giant is boosting its orderbook as it expects a $1 billion to $1.5 billion reduction in income tax expenses in the fourth quarter of 2017, following the recent tax reform bill.

Southwest will receive 15 of the 40 additional 737 Max 8s in 2019 and the remaining 25 in 2020, it says.

The airline has also deferred deliveries of 23 737 Max 7s - the majority of its 30-aircraft order for the variant - to 2023 and 2024. The 23 aircraft were initially scheduled for delivery from 2019 through 2021, but Southwest will now receive 12 in 2023 and the remaining 11 in 2024.

An updated fleet plan shows that the airline will add only seven 737 Max 7s in 2019.

The orderbook changes will "support future growth opportunities and fleet modernisation at favourable economics," says Southwest. It expects less than $1 billion in capital commitments for firm deliveries in 2018, and about $1 billion annually in capital commitments for 2019 through 2022.

The airline's capacity growth plans for 2018 remain unchanged. It had previously said it will grow capacity at less than the 5.7% growth it saw in 2016. It expects capacity to rise around 3% to 4% in the first half of 2018.

Following the fleet changes, the airline's historical orderbook for the 737 Max 8 grows to 210 aircraft. It took delivery of its first in August 2017.

It now has 155 options for the 737 Max 8.


TOPICS: Business/Economy
KEYWORDS: boeing; southwest; southwestairlines; taxes
Dear commie whiners who state that the 2017 tax cut will only help the rich, suck on this! This is blue collar production jobs. This is blue collar flight attendant jobs. This is white collar pilots jobs. This is white collar engineering jobs. This is blue collar airline jobs!

Jobs! Jobs! Jobs! It's all about the jobs and the economic activity they create morons! That leads to GREATER tax revenue than ANY government handout!

1 posted on 01/03/2018 6:01:39 AM PST by Freeport
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To: Freeport

So, they’re reducing the pace and scale of capital investment.


2 posted on 01/03/2018 6:03:50 AM PST by babble-on
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To: Freeport

If it ain’t Boeing I ain’t going!


3 posted on 01/03/2018 6:04:29 AM PST by Don Corleone (.leave the gun, take the canolis, take it to the mattress.)
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To: Freeport

I have a neighbor who is a captain for SW. He tells me that these new A/C will have something on the order of 15% better fuel economy. For an airline, that also is a huge cost saving, and it appears that the new tax law will bring these planes into service sooner. More WINNING!


4 posted on 01/03/2018 6:05:07 AM PST by vette6387
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To: vette6387

LUV is in the air, again!


5 posted on 01/03/2018 6:09:22 AM PST by Jane Long (Praise God, from whom ALL blessings flow.)
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To: Freeport
So SW is spreading out the purchase of the slightly smaller aircraft and accelerating the purchase of the larger of the two variants. I guess they're expecting to be carrying more passengers and cargo. That's good news not only for the airline employees (more jobs), but also Boeing and it's supply chain (more jobs). It also bodes well for the travelling public - more seats flying, lower fares compared to relative scarcity of seats flying...

For the simple minded libtards trying to understand this: yes, SW is a big "rich" company - they make a lot of money, they have a lot of money, and they spend a lot of money. When they (and other big "rich" businesses) are more economically active - making and spending money - it helps out *everyone* working for them, using them, or involved with them. Stop believing the economic lies your communist professors told you.

6 posted on 01/03/2018 6:15:29 AM PST by ThunderSleeps (Doing my part to help make America great again!)
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To: Freeport

Sadly those who voted for Hillary will vote democrat again no matter what happens. They’re dumb.


7 posted on 01/03/2018 6:20:58 AM PST by Terry Mross (Liver spots And blood thinners..)
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To: Freeport

What is the difference between a Max 7 and a Max 8?

I flew in one of them (but don’t know which one) from Denver to Seattle a couple of weeks ago and noticed the interior was much different than other 737’s, the number of rows increased by more than six or eight, two mid-plane exits over the wing on each side, and the seats have adjustable headrests.


8 posted on 01/03/2018 6:21:06 AM PST by CedarDave (Alt-left hates presidents pics on paper money. I'll gladly collect those offensive bills from them!)
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To: CedarDave

The Max 7 is smaller than the Max 8. The 7, depending on configuration, has seating for 138. The 8, again depending on configuration, has seating for 200.


9 posted on 01/03/2018 6:28:50 AM PST by Freeport (The proper application of high explosives will remove all obstacles.)
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To: Freeport

But...but...but...will they be able to deduct state & local taxes? /sarc


10 posted on 01/03/2018 6:34:04 AM PST by House Atreides (BOYCOTT the NFL, its products and players 100% - PERMANENTLY)
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To: Freeport

The Dallas-based low-cost giant is boosting its orderbook as it expects a $1 billion to $1.5 billion reduction in income tax expenses in the fourth quarter of 2017, following the recent tax reform bill.

...

Does anybody miss Obama?

Does anyone wish Crooked was elected instead of Trump?

For that matter, GWB’s tax cuts did little for business activity. They were of the vote buying demand side type.


11 posted on 01/03/2018 6:40:07 AM PST by Moonman62 (Make America Great Again!)
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To: babble-on

It appears to me they are saying the opposite.

Appears they are accelerating the deliveries of the larger planes in their order backlog with Boeing and delaying delivery of the smaller variant.


12 posted on 01/03/2018 6:51:27 AM PST by KC Burke (If all the world is a stage, I would like to request my lighting be adjusted.)
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To: Freeport
Thanks for that information. With it I calulate that a Max 7 has about 23 rows (sounds about the same a existing 737's) and a Max 8 has about a dozen more (~35). The plane I rode on must have been a Max 8 as I was in row 19 and that was only about 2/3 the length of the interior. I was lucky on that flight - it wasn't full on a Thursday afternoon and I had the entire row to myself - total relief with no 300# Bubba's in the center seat!

Knowing that info, I reread the article and realize that Southwest is opting for planes with more seats which means it expects demand to increase to fill those extra seats.

BTW, on Fox Business it was announced that Southwest (and American) are giving employee bonuses. The ripple effect of the tax bill already showing its promise!

13 posted on 01/03/2018 7:07:46 AM PST by CedarDave (Alt-left hates presidents pics on paper money. I'll gladly collect those offensive bills from them!)
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To: Don Corleone

Airliners are all fly by wire these days. Boeing’s are great. But I also love the Airbus A-321 for flying back and forth across the country twice a year.


14 posted on 01/03/2018 7:20:31 AM PST by onedoug
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To: Moonman62
Does anyone wish Crooked was elected instead of Trump?

Sadly, yes. Just Monday a long time on line acquaintance indicated if he had a time machine he'd go back to change the election.

Of course, he is in California...

15 posted on 01/03/2018 7:22:58 AM PST by null and void (Have a MAGAnificent New Year! It'll be YUGE!)
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To: Freeport

Liberals will be upset about the additional fuel being burnt to make them and fly them.


16 posted on 01/03/2018 7:23:51 AM PST by DungeonMaster (Goblins, Orcs and the Undead: Metaphors for the godless left.)
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To: Freeport

As a weekly SWA flyer, I always ask if we have an 8 instead of a 7. The exit rows on the 8’s are a luxury for tall guys. Some of the older 7’s like the 300 series were really out of date. The Max 8 will be used for the LAX to Hawaii runs.


17 posted on 01/03/2018 7:50:35 AM PST by EC Washington
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