General Lee
Well-known member
- Joined
- Aug 24, 2002
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Southwest to save by delaying delivery of planes
Associated Press - 2 hrs ago
DALLAS (AP) -- Southwest Airlines Co. is delaying delivery of new airplanes and filling the gap with used planes to reduce spending over the next five years.
It's also raising its dividend and could soon buy back more of its own shares.
Southwest said Wednesday that it will delay 30 firm orders for Boeing 737 jets, which CEO Gary Kelly said would cut ca pital spending through 2018 by more than $500 million. The airline is also giving up or delaying options for additional planes.
Meanwhile Southwest will buy 10 used 737s from Canada's WestJet over the next two years. They average about 11 or 12 years old and should bide Southwest over until Boeing begins producing a new, more fuel-efficient 737 model called the Max late in this decade, Southwest officials said.
The airline isn't disclosing financial details of the Boeing and WestJet deals, which were announced at the Dallas company's annual meeting.
Southwest is raising the quarterly dividend due on June 26 to 4 cents per share, up from a penny per share. It's also boosting share-buyback authority to $1.5 billion from $1 billion. The company has bought $725 million in its own stock since August 2011.....
Good or bad for you guys? Used planes are popular these days, that's for sure! Hopefully the 10 Westjet birds will be growth for you guys, right? I think they may have Live TV installed already?
Bye Bye---General Lee
Associated Press - 2 hrs ago
DALLAS (AP) -- Southwest Airlines Co. is delaying delivery of new airplanes and filling the gap with used planes to reduce spending over the next five years.
It's also raising its dividend and could soon buy back more of its own shares.
Southwest said Wednesday that it will delay 30 firm orders for Boeing 737 jets, which CEO Gary Kelly said would cut ca pital spending through 2018 by more than $500 million. The airline is also giving up or delaying options for additional planes.
Meanwhile Southwest will buy 10 used 737s from Canada's WestJet over the next two years. They average about 11 or 12 years old and should bide Southwest over until Boeing begins producing a new, more fuel-efficient 737 model called the Max late in this decade, Southwest officials said.
The airline isn't disclosing financial details of the Boeing and WestJet deals, which were announced at the Dallas company's annual meeting.
Southwest is raising the quarterly dividend due on June 26 to 4 cents per share, up from a penny per share. It's also boosting share-buyback authority to $1.5 billion from $1 billion. The company has bought $725 million in its own stock since August 2011.....
Good or bad for you guys? Used planes are popular these days, that's for sure! Hopefully the 10 Westjet birds will be growth for you guys, right? I think they may have Live TV installed already?
Bye Bye---General Lee
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