SWA Adds B737MAX in Record $19 Billion Order

SWA ordered B737s with a catalog value totaling $19 billion from BOE, the largest aircraft order ever and the first to include the more fuel-efficient MAX variant.

The MAX accounts for 150 of the 208 jets in SWAs purchase, and the airline said today it holds options for 150 more. BOE listed prices for the new jet ranging from $77.7 million for the smallest to $101.7 million for the largest.

Upgraded engines on the MAX are supposed to help cut fuel use as much as 12% compared with the current B737. BOE announced the new aircraft this summer, giving a head start on orders to AIR, which decided to equip its rival A320 with new engines about 7 months earlier.

737 MAX is the more fuel efficient 737s -600, -700, -800 and -900 or we´re talking a whole brand new designed aircraft ???

Will be used a new engine family, right ???

and the MAX version would be able to fly routes such as YUL-DUB or YUL-LHR or even YUL-AMS all non-stop ???

No doubt Southwest will turn those options into orders, especially with the number of aircraft they will need to replace within the next 10 years. Would also not be surprised to see them place an additional order for the MAX about 1-2 years after they start entering service.

The 6 is not going to be offered. It is not a brand new design, but you will be able to differentiate between the MAX and current NGs. The primary change will be the use of the larger and more fuel efficient CFM International LEAP-1B engines. From YUL, both DUB & LHR would be in range, not so sure about AMS though.

“SWA has done everything they can to lower costs on operations and on labor, so it comes down to equipment and technology and fuel savings,” said Richard Aboulafia, VP of consultant Teal Group in Fairfax, VA. “It’s a very strong endorsement for the MAX.”

BOE shares gained after the firm order, which eclipses AIR's record for 200 planes from AXM in JUN. The planemaker climbed 0.4% percent to $71.20 at 3:12 p.m. in NYC. SWA fell 2.1% to $8.25.

Buying 737s extends SWA's status as the world’s largest operator of the plane and its commitment to flying only BOE aircraft. It is the fourth time SWA has served as the initial customer for a version of the 737.

Skid Kid:
I thought 737Max will be the 3rd time in which WN is the launch operator of a 737 variant/generation:
1) 733(i.e. 737Classic)
2) 73G(i.e. 737NG)
3) 73Mx(Either Mx7 or Mx8)

Which one hv I missed?

Lisa:
Althought new tech hardwares+key specs are pretty much locked-in already for the 737Max, its performance is still largely undefined @ this stage. Unlike Skid Kid, I think it's too early to bet on 737Max will hv Trans N.Atl range @ ECONOMIC PAYLOAD(Or pax/seat density). The same goes for the 320Neo. 90% of all operators look for no more than 6-6.5hrs range @ full pax fm a narrowbody. That's more than sufficient to fly between any 2 points in N.America or in Europe/MidEast/N.Africa but still a bit short for reliable westbound Trans-Atl ops in winter headwinds(As a flight attendant on AirTransat, U should hv experienced this a lot more often than the avg Joe like us).

At the extreme ends, new engine tech on the 737Max/320Neo can be applied 100% to improve range only but gain 0% fuel burn improvement or it can be used 100% to cut fuel burn but 0% improvement in range. Because of the longterm trend in oil price, I personally believe narrowbody customers are vastly more interested in lower fuel burn than more range fm the new tech on 737Max/320Neo. A handful of operators may use 737Max/320Neo to try long routes never before flown by 737/320 but the vast majority will simply fly their 737Max/320Neo on routes alreaday flown by 737NG/320 today.

FLX: 3, 5, 7, & MAX. In MAR81 SWA and USAir both ordered 10 B733s and took options on 20 more. The B735 was launched in 1987 by SWA with an order for 20, & first flew 30JUN89. The B737 was the first of the NG's launched when SWA ordered them in NOV93.

Skid Kid:
Thx for the clarification. So WN has been+will be the launch operator for 3 generations in 4 diff variants of 737. Talk about ultimate customer loyalty......