A Southwest Airlines jet lands on January 28, 2021 at Midway International Airport in Chicago, Illinois. (Photo by Scott Olson / Getty Images)
Boeing and Southwest Airlines have been best friends for 50 years, but is Southwest looking for a new partner to expand its fleet?
Boeing reports that in 2020 there was a $ 11.9 billion loss amid 737 MAX problems under pandemic
Southwest Airlines is the main customer of Boeing. It has more than 700,737s in its fleet, and it has always been a Boeing customer. Southwest was the launching airline for the 737-700 in 1997. It flies with an all-737 fleet.
As Boeing fits a new aircraft for more than 200 people, Southwest is looking for an aircraft that can only accommodate 150 passengers. This is a perfect solution for the Max-7, but Boeing’s Airbus rival has its own small aircraft, the A-220, which may fit the bill.
Aviation Journal The air flow suggests that Suidwes might make the leap to Airbus, which would be a devastating blow to Boeing.
“The relationship has been strained over the years, with the MAX foundation and a few other incidents before it, which was very expensive, and so it’s not all in paradise,” said Jon Ostrower, founder of Air Current , told Mike Lewis, host of KIRO Nights.
There are 300 new aircraft at stake.
“It seems that Suidwes is seriously considering a competition between the MAX and the Airbus A-220,” said Ostrower.
Boeing and GE, which manufacture the engines for the MAX, are currently in talks with Southwest to implement this agreement, which according to Boeing is still losing.
“When it comes to this, it’s a head-to-head competition, the senior manager of Suidwes with whom we spoke for the story, and others said that there is a great chance that Boeing could lose the overall competition. , “said Ostrower.
Southwest is also considering whether it is still a good business model to have one aircraft supplier in its fleet. Had the aircraft been grounded, Suidwes would have been in big trouble. Suidwes already has 200 MAXs on order, and this 300 aircraft order is in addition. Ostrower said this agreement is essential for Boeing.
“If Southwest were to buy another 300 737s today, Boeing would increase its overall 737 backlog by almost 10%,” he said.
For a bit of history, Boeing and Southwest had a similar dance in 2011 when the MAX was developed. The negotiation ended with Boeing deciding to rebuild the 737 instead of building a new aircraft, and Suidwes stuck with the company.
Boeing hopes loyalty and long-term relationships can help that day.
Listen to the full interview with Ostrower below:
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