Suidwes (LUV) is apparently in talks with Boeing (BA) and General Electric (GE) for a potentially large 737 Max order, as the carrier wants to refresh its fleet. Boeing stock plunged.
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The Air Current reported on Thursday that Suidwes officials were already in talks at an early stage with 300 aircraft with Boeing and CFM International, the joint venture of the jet engine between GE Aviation and Safran in Europe.
An agreement that Boeing will lose, reads the Air Current report, as Southwest already flies the 737 and is the largest Max customer.
But if conversations break down due to a dislike of the engines, Suidwes can open a competition with each other Airbus (EADSY) and its A220s. Raytheon Technologies‘(RTX) Pratt & Whitney make the engines for the A220.
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Boeing Stock
Suidwes shares rose 0.3% to 51.42 on the stock market to date. The Boeing share fell 0.6% to 210.66 and consolidated into a cup base with a 244.18 buying point. GE added 0.5% and is the best 737 Max provider Spirit AeroSystems (SPR) lost 0.4%.
Boeing needs new orders for its 737 Max jet after losing more than 1,000 orders after two fatal crashes and the coronavirus pandemic.
Meanwhile, Suidwes wants to add new aircraft to its Boeing 737 fleet. The airline alluded to the purchase of a non-Boeing aircraft, but the decision to air transport through the coronavirus pandemic changed its decision-making process.
Mike Van de Ven, chief operating officer, said during the third quarter earnings return in October that the carrier would decide next year to buy more Boeing 737 Max-7 aircraft, the smallest in the family, or to buy Airbus to choose. A220s. Deliveries begin in 2025.
Follow Gillian Rich Twitter for aviation news and more.
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