Would Southwest Airlines end up with 50 years of Boeing history to add an Airbus A220-300?

Boeing no longer needs bad news, from fundamentals to lawsuit. And just as the 737MAX began to return to work, United, Japan Airlines and others pulled Boeing 777s out of service due to engine failure across Colorado.

But there is more. One of Boeing’s most loyal messengers is considering a competitive product. Southwest Airlines is said to be evaluating the Airbus A220-300 against a Boeing 737 MAX7.

Boeing and the southwest go a long way back. The southwest has been Boeing’s biggest buyer for the flagship 737, which first flew in April 1967. The first 737 southwest flight was just four years later, at 18 June, 1971.

(Full disclosure: I have stock in American Airlines, JetBlue and Southwest.)

The Southwest has operated more than 1050 Boeing 737 aircraft since that June 50 years ago. By the same estimate, Southwest is currently flying a total of 602 737s (including 737-700, 737-800 and 737 MAX planes), with 130 still parked with the entire disease -discharged.

The long-standing partnership was beneficial to both companies. For Boeing, the Southwest relationship meant billions of dollars in aircraft sales, spare parts, upgrades, training, and other services. For the Southwest, operating an all-Boeing 737 fleet meant all sorts of potential economies. Pilots, flight attendants, mechanics and more could theoretically work on any aircraft. Experienced and general breeding efficiency of parts and training offered further economies. The flights were stable and fitted to the Southwest fast turnaround model, flying an average of more than five flights or just over 11 hours a day as of 2019.

Southwest Airlines is celebrating its 50th^th anniversary in 2021. Almost every million trips (4000 per day in 2019) has been with the Boeing 737 version.

But 1971 was a long time ago, and the needs of an airline are changing in a post-war world. Loyalty is also a two-way street, with some claiming that the catastrophic 737MAX situation was reminiscent of the friendship.

The South West fleet has just under 500 737-700 models. These are the oldest aircraft operated by the Southwest, and the smallest, with 143 seats. (Both the latest 737-800 and 737 Max 8 are fitted for 175 seats.)

The Southwest is reportedly evaluating the Airbus A220-300, which can seat from 130 to 1414, as a replacement for the aging 737-700. The Airbus A220-300 was originally designed and built by Bombardier Canada, until the line was purchased by Airbus and renamed after the Airbus “A”.

As Airbus puts it, “the A220-300 was specially designed and built specifically for the 120-160 seating market.” The aircraft offers a voyage of 447 knots, and a range of 3300 nautical miles, more than enough for flying Southwest routes from California to Hawaii, as well as its 800-mile hops around the U.S. more than 400 orders for the aircraft. reserved, including 60 A220-300s ordered by Southwest rival JetBlue in 2018.

The manufacturer claims that the A220-300 offers lower mileage costs as well as lower CO2 emissions. The six-tonne aircraft is lighter than the Airbus A319neo and will save up to 20% on fuel costs over that aircraft. With a maximum acceptance weight (MTOW) of 149,900 pounds, the A220-300 is also lighter than the Boeing 737 MAX 153-seat 7. The smallest MAX has a MTOW of 177,000 pounds.

Oil prices have been rising as the economy is “reopened”. In a post-pandemic world, there may be less more, both in terms of fuel economy and easily filling planes with vaccinated passengers. Unlike the many parked A380s and other extensive flights, ‘right size’ (and properly priced) aircraft like the A220-300 are in high demand for $ 91 million.

So the A220-300 might make sense for the Southwest. But would the airline attack and step out of their Boeing safe haven?

At least as far back as 2019, flight pundits have been speculating about the southwest move away from finding their only plane. Southwest Leader Kelly is said to be “angry with Boeing” over the 737 MAX debate. More importantly, “Kelly, along with American Airlines officials, believes that Boeing will have to pay for the ~ $ 1bn in damages that both airlines claim to have suffered as a result of the MAX. ”

But the profitability has lifted recently. Southwest Airlines is in talks to buy at least 300 new 150-seat jets for its fleet. The campaign would “put Boeing 737 MAX 7 and Airbus’ A220-300 aircraft in head-to-head competition… to replace an aging fleet in the South West with 737-700s. ”

Southwestern testing of competitive aircraft has previously been shown as a way to get levers over Boeing in negotiations. But since the 737 MAX was successfully established (the Southwest ordered 280 of the planes with stars) AirInsight described the change as potentially “karma.” As in bad karma for Boeing going back to the MAX line launch in 2011. “MAX was like the product of something like a shotgun marriage. It was created in a hurry and developed with all sorts of constraints, but especially time, as it was a response to the A320neo. “

The bad karma, according to AirInsight, continued after Delta ordered up to 125 flights from Bombardier, the original manufacturers of the C Series, including what is known today as the A220-300. “Boeing accused Bombardier of dumping and complaining to the US government. Bombardier was demolished with heavy dumping duties, “pushing the Canadian manufacturer” to be. ” Bombardier’s “C-crown jewel” Series C eventually sold to Airbus for less than $ 600 million.

More bad karma came with two MAX crashes with nearly 350 deaths. The MAX was established for 20 months. Boeing received a blow to its reputation, according to a report as a result of “a 70% discount IAG received on its MAX 2019 order at the Paris air show.”

Karma or not, can Boeing still compete for Southwest industry in the future? The company remains a world leader in aircraft development. All southwestern pilots are trained on Boeing aircraft, and Airbus A220-300 production may be too low to meet demand. And “Boeing’s price power is very precious.” as AirInsight put it. But now, “airlines have a different world. A world where loads are lighter, stay below par and look to stay that way for some time, perhaps until 2023. ”What would – or could – Boeing lower prices to make the South West more flights Take 737MAX?

The southwest turn is still profitable. But after the pandemic, even the coldest relationships come under scrutiny.