Although Boeing has large commitments for 737 Max aircraft from both Indonesia’s Lion Air and American Airlines, Southwest was the first airline to sign a firm order for the new plane. Southwest will receive the first of the new aircraft when it debuts in 2017.
The order, which includes 58 Next Generation 737s, is worth $19 billion at list prices, making it the largest order in Boeing history. The Lion Air order for 230 aircraft and a value of $21.7 billion will surpass Southwest’s order once a firm deal is signed.
Before the latest order, Southwest had 142 737s on Boeing’s order books yet to be delivered. With the new order, the Dallas carrier has a total of 350 737s ordered for delivery between 2012 and 2022. The company has options for 242 additional aircraft.
The airline also announced Monday it is substituting 737-800 aircraft for the 737-700 aircraft it had ordered for delivery in 2012 and 2013 and part of 2014. The 737-800 is 38 seats larger than the 737-700 in Southwest all-coach configuration.
The 737 Max will be built in Boeing’s Renton plant under a new labor agreement signed just last week between the International Association of Machinists and Boeing.
The new plane will feature new CFM engines that promise a double digit increase in fuel economy over the present 737 Next Generation aircraft.
The plane will also include aerodynamic refinements and durability improvements that will enhance its economy.
Although the order is valued at $19 billion at list prices, big customers such as Southwest often receive substantial volume discounts for big orders.
With the Southwest order, said Boeing, the company has received orders and commitments for more than 900 737 Max aircraft. The 737 is the world’s best-selling jetliner. Boeing has sold more than 6,000 of the Next Generation version.
John Gillie: 253-597-8663 john.gillie@thenewstribune.com
