The speculation is mounting that Boeing is about to conclude a leading 737 MAX deal with Southwest Airlines. The airline already has a number of MAXs in its fleet and is putting some of them back into service this week. If the reports are correct, the billion-dollar prospective order will help highlight the remarkable returns of the 737 MAX.
Reports indicate that Southwest Airlines is considering ordering at least 130 Boeing 737 MAXs
According to a Reuters report by Eric Johnson, Southwest Airlines is in the final stages of negotiations to buy 130 Boeing 737 MAX 7s with options for 170 more. The Reuters report cites unnamed sources close to the agreement. Simple Flying approached Southwest Airlines and Boeing for confirmation. Both declined to comment.
Should Southwest Airlines sign off on the order, the deal would be a triumph for Boeing. After a tumultuous two years, it is now underway at the major aircraft manufacturer. In February, Boeing posted its first net positive month for aircraft orders since March 2019. So far this year, Boeing’s order book has grown by 34 aircraft after cancellations and tampered with existing orders.
Confidence in the 737 MAX increases
And it is the 737 MAX that attracts the most interest from Boeing. After two fatal accidents and a 20-month-long foundation in the United States. The FAA reaffirmed the plane to fly to the United States in November last year. Many experts have speculated whether the plane would ever take service again during grounding, and if so, would an airline buy it?
It seems to be a resounding yes on both sides. US airlines are gradually putting the 737 MAX back into service without incident. American Airlines put the plane back in the air before the new year. United Airlines resumed flying the 737 MAX in mid-February. Alaska Airlines performed its first 737 MAX flight on Monday, March 1st. Southwest Airlines re-commissioned the 737 MAX today.
Southwest Airlines CEO Gary Kelly said in a statement earlier this week;
‘I trust the ability to drive the Boeing 737 MAX 8 safely.
“The changes that have been made and the measures taken by literally thousands of experts around the world have convinced me that the MAX is ready to fly safely again with our proud and beautiful Southwest color and our pilots’ combined stamp of approval.”
A striking turn for Boeing and the 737 MAX
This is the kind of confidence seen in airlines abolishing their money and ordering more MAXs. In December, Alaska Airlines increased its MAX orders and options to 120 aircraft. In the same month, Ryanair in Dublin increased its order for MAXs from 135 aircraft to 210 aircraft. More recently, United Airlines ordered 25 more MAXs and brought forward the delivery schedule for 45 MAXs already on order. This is a remarkable turnaround for an aircraft that many experts have written off. Boeing, which has persevered with the aircraft amid so much adverse publicity, will welcome the business and confidence in the MAX.
Meanwhile, the news that Southwest wants to sign another 737 MAX deal with Boeing will not be so welcome across the Atlantic. Simple Flying previously reported the airline was looking at the Airbus A220 when Southwest no longer wanted to buy new aircraft to replace their older Boeing 737-700s. That type of aircraft has a lot to do. But Southwest Airlines has always kept it simple and largely operates one aircraft type (the 737) from one manufacturer. An A220 order from Southwest Airlines would have been a big upset and a big win for Airbus.
Do you think Southwest Airlines should stick with the Boeing 737 or try the A220? Post a comment and let us know.