Southwest Airlines is looking at Airbus planes as Boeing 737 Max alternative - The Dallas Morning News

farihaue.blogspot.com

Southwest Airlines will consider adding jets from European aircraft manufacturer Airbus to its all-Boeing fleet as the grounded 737 Max moves closer to recertification.

Dallas-based Southwest, which has flown Boeing’s single-aisle 737 jets for nearly all of its history, said in a call with investors Thursday that it is looking into an alternative aircraft and Airbus A220 jets may fit its needs.

The A220 is Airbus' smaller jet that can hold 100 to 150 seats, depending on the configuration, and has a range of about 3,900 miles, roughly the same as Boeing’s 737 Max. Delta made a big bet on the A220, ordering 95 jets, and it is getting the first one delivered this week. A220s are made at a factory in Mobile, Ala.

Southwest has been looking into an alternative to the 737 Max after the plane was grounded in March 2019 following deadly crashes in Ethiopia and Indonesia that killed 346 people. CEO Gary Kelly has said the company will consider planes from Boeing and others.

The A220 is on the shortlist, Southwest chief operating officer Mike Van de Ven said.

“The A220 and the MAX 7, they’re the two players in the marketplace and both of those airplanes have their strengths and their disadvantages,” Van de Ven said during Thursday’s call with investors. “And we’ve been looking at both airplanes. We will continue that evaluation.”

The COVID-19 pandemic has decreased the need for more airplanes, but it’s also given the company time to think about diversifying its fleet.

“So the only thing that I would willingly admit is that if there were ever a scenario for us to consider making a change in aircraft type, it would be now because we are not desperate to grow the airline and may not be for a long time,” Kelly said.

Southwest has long touted that its single fleet type of 737s gives it a competitive advantage over other airlines because the planes are interchangeable across the fleet. Crew members, passengers and mechanics can jump between planes.

“We have a ton of 737-700s that are coming up for retirement over the next five to 10 years,” Kelly said. “And we will absolutely want to replace them, but we’re certainly not thinking that we want all 175-seaters.”

The A220 has been a popular talking point in the airline industry because its smaller size could give carriers the ability to serve smaller communities. The plane was originally a partnership between Airbus, Embraer and the Quebec, Canada, government. But since then, Airbus has taken a larger stake in the jet and is producing a new line out of Alabama.

Delta's new Airbus A220-100 airplane sits parked at gate E15 of Terminal E at DFW Airport on Wednesday, Feb. 6, 2019. (Smiley N. Pool / Staff Photographer)

Chief financial officer Tammy Romo said there are advantages to the single-type fleet, but smaller jets like the A220 have their advantages, too.

“We have long been an all-Boeing carrier and there are certainly efficiencies that come with that,” she said. “All that gets factored into our valuation, but a smaller gauge aircraft like the 220 or MAX 7 certainly are aircraft that we will need to fly those shorter- to medium-haul markets.”

The convenience of a single fleet type was severely challenged in March 2019, when the Federal Aviation Administration and global regulators grounded the 737 Max because of a faulty software system meant to help stabilize the plane that contributed to those two crashes. Boeing and the FAA, both under extreme pressure to get the plane fixed safely, are still working on fixes and the aircraft is expected to be recertified and ready to fly again sometime around the end of 2020.

The grounding forced Southwest, the largest global owner of the 737 Max with 34 jets and dozens more set for delivery, to cancel thousands of flights. Because all of Southwest’s new plane orders were for the 737 Max model, it severely restricted the airline’s ability to grow during one of the best years in global aviation history.

Southwest promised to look at an alternative to the Max, but wanted to wait until the plane was recertified to fly. That was nearly 20 months ago.

Southwest has hundreds of 737 Max jets on order with Boeing and has negotiated a deal to delay many of those deliveries during the next two years.

“Our interim agreement with Boeing from earlier this year is that we will take no more than 48 aircraft through the end of 2021,” Romo said. “The environment has not improved since then, and it’s certainly safe to say that we do not need 48 aircraft next year.”

While the pandemic has given Southwest time to look at new planes, it’s also given it time to delay committing to a new jet.

“We don’t really need to make those decisions until probably 2025 and beyond,” Van de Ven said. “So today, we’re just really focused on the Max, getting the Max back into service, making sure that we have the right delivery schedule with Boeing.”

Let's block ads! (Why?)

"Max" - Google News
October 24, 2020 at 04:36AM
https://ift.tt/2Tl7VtU

Southwest Airlines is looking at Airbus planes as Boeing 737 Max alternative - The Dallas Morning News
"Max" - Google News
https://ift.tt/2YlVjXi


Bagikan Berita Ini