I am proud to announce that Southwest Airlines has placed the first firm order for 150 Boeing 737 MAX airplanes! We'll take delivery of the very first 737 MAX, becoming the launch Customer for the plane in 2017. As you know, Southwest also was the launch Customer for the Boeing 737-300, -500, and -700. The MAX builds on the strengths of today's Next-Generation 737 technology and is powered by CFM International LEAP-1B engines.
In addition to our order for the MAX aircraft, we announced our plans to expand our current order book with Boeing for 58 additional Next-Generation (NG) 737 aircraft. These new orders, along with the MAX order, join an existing firm order book of 142 bringing the Company’s total firm orders with Boeing to 350 for 2012 through 2024.
The volatile marketplace requires us to work closely with our partners and challenge them to do what they can to guarantee that our fleet is as efficient as possible. With the 737 MAX, the Boeing Company has risen to the task and given us a more fuel-efficient airplane while CFM International has developed an engine to reduce fuel burn. These advancements will help us maintain our position as the low-cost provider in the face of unprecedented economic challenges.
The 737 MAX with LEAP-1B engines will reduce fuel burn and emissions by an additional 10-11 percent over today’s most fuel-efficient single-aisle airplane. It will have the lowest operating costs in the single-aisle segment, with a 7 percent advantage over the competition.
The 737 MAX guarantees Southwest:
- A single fleet type well into the next decade with the operational benefits associated with training, schedule recovery, and maintenance programs
- The 150 firm orders allow for replacement of the Classic/717 fleet by 2024 with an aircraft that promises a 16-18% improved fuel burn;
- The 737 MAX has an engine/airframe combination that is uniquely designed to optimize operating performance for our aircraft;
- And this announcement provides for a continuing partnership between Boeing/GE/SWA that will be dedicated to continually improving the operational/ economic performance of the aircraft and engines.
We have been in discussions with Boeing for several years discussing the Next-Generation 737 renewal program. The 737 MAX delivers competitive fuel burn improvement and does so in a manner that minimizes operational complexity at Southwest. The 737 MAX is tailor-made to our network needs.
We did not make a decision of this magnitude without extensive evaluation, analysis, and due diligence. We compared the 737 MAX with the Airbus NEO product. Both aircraft deliver substantial improvements on their existing products. However, given that the product choices were ultimately re-engined derivatives from the existing product lines, we concluded that the 737 MAX with its improved economics, fleet commonality, and our mission profile was the clear choice for Southwest.
Check out the video above to see animation of what the MAX will look like. Like the -800, the MAX will feature Boeing’s Sky Interior. In addition, Boeing has created a web site at
http://www.boeing.com/newairplane.com//737/737Max/southwest/. A web cast of today’s press conference announcing this big news will be available at
http://www.ustream.tv/channel/5799494 beginning at 9 a.m. CST. If you want to watch, you’ll have to view from a computer outside the Southwest network. Gary and I will record a special Newsline message later this morning, so be sure to tune in. A video recap of the event will post here on
SWALife this afternoon.
This is a significant milestone at Southwest and will result in a longterm fleet plan that ensures we continue to operate one of the, if not the, most efficient fleet in the world. It’s a great gift in this season of giving!
