WASHINGTON (dpa-AFX) - Southwest Airlines Co. (LUV) announced Monday the completion of its previously disclosed discussions with Boeing Co. (BA) regarding the restructuring of its delivery schedule for MAX aircraft.
The airline has completed the multi-year evaluation of the successor aircraft to its Boeing 737-700 model, with the selection of the Boeing 737 MAX 7 aircraft.
Southwest Airlines and Boeing reached agreement on 100 firm orders for MAX 7 aircraft, with the first 30 scheduled to be delivered in 2022.
This agreement underscores Southwest's commitment to continued modernization of its fleet with more fuel-efficient and climate-friendly aircraft. It also positions Southwest to capitalize on growth opportunities, when they arise.
As part of the agreement, the Company also converted 70 MAX 8 firm orders to MAX 7 firm orders and added 155 MAX options for MAX 7 or MAX 8 aircraft for years 2022 through 2029. These order book additions and revisions result in a new total of 349 MAX firm orders and 270 MAX options for MAX 7 or MAX 8 aircraft for years 2021 through 2031.
The Company continues to expect delivery of 28 MAX 8 aircraft in total this year as well as 17 737-700 retirements, ending 2021 with 69 MAX 8 aircraft and 729 total aircraft.
The Company expects more than half of the 737 MAX aircraft in its firm order book will replace a significant amount of its 462 737-700 aircraft over the next 10 to 15 years to support the modernization of its fleet.
Copyright RTT News/dpa-AFX
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