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Boeing Secures Another Deal With Southwest Airlines For Its 737 MAX Airplanes

Boeing Secures Another Deal With Southwest Airlines For Its 737 MAX Airplanes

Boeing Co (NYSE: BA) will supply Southwest Airlines Co (NYSE: LUV) with 100 737 MAX airplanes and 155 options across two models.

What Happened: Boeing announced on Monday that Southwest Airlines ordered additional airplanes.

To date, Southwest Airlines has ordered 200 737-7s, which seats 140 to 150, and 180 737-8s, a 175-seat model. Thirty of the airplanes have already been delivered.

With the agreement, Southwest Airlines will also have a total of 270 options for either model, taking the commitment to more than 600 airplanes through 2031, stated the press release. The airline plans for additional 737 MAX jets through third-party lessors.

It was reported earlier this month Boeing and Southwest had entered a multibillion-dollar, deal but order numbers were not given at the time.

Why It Matters: Southwest Airlines is updating its fleet with the new Boeing 737 MAX airplanes to meet climate objectives. The new planes use less fuel and produce 14% fewer carbon emissions than the planes currently in use by Southwest Airlines.

“In addition to supporting our efforts to operate sustainably and efficiently, the 737 MAX offers Employees and Customers travel comforts such as a quieter cabin, larger overhead bin spaces, seating with adjustable headrests, and more galley space for onboard service,” said Mike Van de Ven, Southwest Airline's COO.

What’s Next: In addition to supplying airplanes, Boeing will also provide a number of products to support Southwest Airlines as it continues a digital upgrade.

“As part of the agreement, Southwest will also expand its use of Boeing’s digital solutions to support its 737 MAX fleet, including Airplane Health Management, Maintenance Performance Toolbox and digital navigation charting tools. Boeing will also provide system software upgrades and new wireless communications-enabling equipment to support Southwest’s operations,” Boeing stated in the press release.

(Photo: Boeing)


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