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.
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!
So, they’re reducing the pace and scale of capital investment.
If it ain’t Boeing I ain’t going!
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!
LUV is in the air, again!
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.
Sadly those who voted for Hillary will vote democrat again no matter what happens. They’re dumb.
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.
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.
But...but...but...will they be able to deduct state & local taxes? /sarc
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.
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.
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!
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.
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...
Liberals will be upset about the additional fuel being burnt to make them and fly them.
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.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.