Southwest Airlines On placing a large order for Boeing 737 MAX 7

Gary Leff at the age of 11. March 2021.

Southwest Airlines is about to place a large order for Boeing 737 MAX 7 aircraft, on top of the 30 orders already placed. This is important for an airline that was understaffed before the pandemic and had trouble landing a plane. But even more important for Boeing is to keep the All-737 customer.

Boeing Co. is close to closing a multibillion-dollar deal to sell dozens of its 737 MAX 7 aircraft to Southwest Airlines Co. It could be the largest order for 737 MAX jets for the company since the safety ban was lifted, people familiar with the matter said Wednesday.

CEO Gary Kelly said in October 2019 that the board had asked him to look at other aircraft in addition to the Boeing 737.

If you look at the other planes, you can see that they gave Southwestern an advantage. Boeing is getting more and more desperate. They’ll probably get the deal of the century.

The fact that the airline’s board of directors has asked the CEO to look for more aircraft has special significance for Southwest, and not just because it means taking on the complexity and cost of maintaining more than one type of fleet.

In 1978, when the board of directors fired Southwest’s founding president, Lamar Muse, and Herb Kelleher became a co-founder, the immediate problem was that Muse ordered a Boeing airplane without board approval. Muse took the position that he only spent $1,000 on a bond to allow the council to hold elections. Rollin King used the topic to spark a discussion that eventually forced Muse to leave. Lamar’s son Muse began competing with Muse Air (called Revenge Air), which was eventually bought by Southwest.

Since its inception, Southwest has primarily used Boeing 737s, although it also leased Boeing 727s from Braniff for a time. This was largely the result of serendipity. The 737-200 was always on the airline’s desk because Southwest’s business model was based on PSA in California and they were the operator of the 737.

The first major investor in Southwest wanted the airline to use a Boeing 707 with skylights so passengers could look up at the sky. In fact, the airline was considering six different aircraft: Boeing 737-100, Boeing 737-200, DC-9-30, DC-9-10, BAC-111-400 and Caravelle.

Rollin King and Muse were in a meeting at Douglas when Muse called Boeing and asked them to make a deal within an hour or they would have bought from Douglas.

During the Douglas meeting, Boeing called back to take over. Southwest began recruiting pilots from Purdue Airlines, which was winding down its operations. Since Purdue was the operator of the DC-9, it had to pay to send pilots who were not certified to fly a Boeing 737 to the United Airlines training center in Denver.

The new Boeing 737-200s remained without buyers, as the customers for which they were intended did not expand after the recession of 1969-1970. They finished the interiors, but did not paint them.

Here are the conditions under which Beoing offered its first 737s:

  1. Southwest will operate three parked Boeing 737-200s and an option for a fourth.
  2. They would pay $4 million per plane, without more, $50,000 per month per plane for 60 months, with a balloon payment after five years.
  3. 50% discount on the cost of replacement engines, parts and equipment necessary for the operation of the aircraft, with the remaining 50% to be paid within 24 months.

Southwest will likely pay more than it did for the first 737-200s, but since Boeing is desperate to keep its contracts with Southwest, it will likely pay less than before, at half the list price.

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frequently asked questions

Possible cancellation of flights to Southwest on 737s at best?

Southwest is canceling nearly 400 daily flights in the summer because of the 737 Max : What travelers need to know. Southwest Airlines on Thursday postponed the scheduled return of its Boeing 737 Max until early August, meaning the airline will be without a Max for the second consecutive summer as the plane is grounded with problems.

Southwest Airlines is flying a 737 Max?

Let’s be clear: I have full confidence in our ability to operate the Boeing 737 MAX safely, he said. … I hope you, like me, find comfort in knowing how much has been done to make MAKS one of the best rated aircraft in the world.

Can I refuse to fly on a max 737?

The airlines have announced that they will allow passengers of the 737 Max to exchange their tickets for free if they do not feel comfortable flying on the newly refurbished aircraft. But, adds Seymour, if a customer doesn’t want to fly on a 737 Max, they don’t have to. …

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