The model is simple: one aircraft and one aircraft only. But after 47 years, Southwest may finally be looking beyond the Boeing 737.
When Southwest Airlines began operations in June 1971, it chose the Boeing 737 for its fleet. For nearly five decades, the Dallas-based airline has yet to deviate. But two recent Boeing 737 MAX crashes have prompted Southwest to seriously explore a relationship with Airbus.
Jon Ostrower recently reported that Southwest visited an unnamed Airbus A220 operator in Europe. Although Southwest later confirmed that the trip had been planned in advance of the ET302 crash, the timing and meeting itself suggest a growing discontent over Boeing.
SCOOP: Since the 737 Max was grounded, representatives of Southwest Airlines paid a visit to a European A220 operator to kick proverbial tires on the aircraft and hear about the carrier’s experience with the new jet. https://t.co/PerTwxZTr5 (via @theaircurrent) https://t.co/fiU3iPUu4r
— Jon Ostrower (@jonostrower) April 23, 2019
As Southwest continues to cancel flights while waiting for a 737 MAX software fix, CEO Gary Kelly addressed the issue in Dallas last week.
There is no reason at this point in time to declare that we’ll have a single aircraft type forever or not. Obviously, the situation with the Max is not anything that’s been happy for us. I’m not going to try to deny that.
He later told CNBC that although Southwest has no short-term plans to deviate from the 737, “That doesn’t mean we’ll be an all-737 carrier into perpetuity.” Earlier this week, he added Southwest has “a duty to look at anything new that develops.”
Although this suggests a willingness to change, Kelly also voiced his confidence in Boeing’s 737 MAX program.
Obviously, at this point in time, we don’t have any plans to change there. But like anyone, we’ll have to constantly evaluate what’s available in the marketplace. And we’ve been a Boeing customer all these years, and I think chances are we’ll continue to be a Boeing customer.
Note, though, he did not say “exclusively” Boeing customers.
CONCLUSION
On the one hand, it is hardly surprising that Southwest is looking beyond Boeing after its questionable handling of the 737 MAX issue. But on the other hand, I do wonder if this is all just a bluff to extract more concessions from Boeing rather than a true desire to diversify the fleet.
Do you think Southwest is bluffing?
I suspect two issues are in play here. 1.) The MAX grounding has certainly been costly and suggesting they could be about to defect is a major shot across Boeing’s bow. Boeing is being warned to be ready to write a nice fat check. Because otherwise the future order book is at stake.
2.) Everyone is upgauging right now. Southwest is moving from 700’s to 800’s and MAX 8’s. Jetblue is only going to be taking 321’s in the future. The 319 and 700/MAX7 are effectively dead. Which leaves a void for markets that don’t need 200 seats at a time. Enter the 220 which has very compelling economics in the space once occupied by the 319/700. I strongly suspect that Southwest is looking at its route structure and realizing that for many cities the MAX8 is too much plane. But the 220 would enable them to continue serving those markets profitably.
Just imagine what WN could do with a fleet of A220s! Given the point to point flying that WN does, this aircraft could be a perfect fit for them. Connecting smaller/mid-sized markets with larger/resort metros with better economics. It could be just what the doctor ordered. If they were ever going to break out of the 737-only mold, that would be a great way to do it.
Bombardier couldn’t get anyone to buy the plane (except essentially give it away to Delta), but now that it has an A in front of it everyone is now all of a sudden interested…what is that all about?
They couldn’t get anyone interested because every time they tried to make a sale they faced Boeing and Airbus offering their products at fire sale prices to block the C series. As you said they had to practically give them to Delta to seal that deal which wasn’t sustainable. Boeing and Airbus knowing the precarious financial state Bombardier was in were prepared to do whatever they could to kill the airplane. Now that Airbus owns it however, it’s being sold on its merits. Of which their are many.
I hadn’t heard of Southwest’s quiet look at Airbus, but given the reality of the 737max situation it isn’t surprising. Unique and nice post Matthew.
Southwest owes Boeing nothing at this point — especially given they’ll have the Max nightmare hanging over their operations for decades. If Airbus offers Southwest a good deal, Southwest should jump on it.
Frontier is literally advertising their “Fit All-Airbus Fleet” on the front page of their Web site.
Enough is enough, Boeing.
I think Bombardier designed and made a great high-tech aircraft
The CSeries/A-220 is passenger friendly airplane with wider seats, larger windows, larger luggage bins, normal-size toilets, very long-range, very low carbon footprint, very low fuel burn, great performances…
Simple economics: The A220 is the narrow-body version of the Boeing 787, made of 40% carbon fibre for lighter weight and significantly less fuel burn. The isle is wide enough to squish between a seat and the service cart to go to the lav. Try that on a 737. Bombardier gave us the future and Southwest is tempted.