Southwest Airlines is seriously considering the Airbus A220 for its next new jet
Salt and pepper, airports and airplanes, Southwest Airlines and the Boeing 737. All items that are expected together.
But now Southwest, having flown the 737 nearly exclusively since 1971, may finally be ready to add a new aircraft type to its fleet. The airline is evaluating its next small jet — one seating around 140 to 150 passengers — and both Airbus A220 and 737 MAX 7 are on the list.
“We absolutely do need the smaller airplane," Southwest CEO Gary Kelly said during the airline's third quarter earnings call on Thursday, Oct. 22. "We have a ton of 737-700s that are coming up for retirement over the next several years.”
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Ordering a plane during a crisis is not necessarily a bad idea. As long as an airline can support the financial commitment, planemakers are often desperate for new deals as orders tend to dry up and deliveries slow as airlines struggle.
Boeing, for one, has lost 757 orders for the 737 in 2020 alone, according to its orders and deliveries data through Sept. 30. The cancellations are likely a combination of the jet's grounding and the COVID crisis.
In addition to potential deals, Southwest anticipates a recovery in air travel over the next two to three years — or in the 2023 or 2024 timeframe. All told, given the lead time for new planes from both Airbus and Boeing, the carrier needs to act soon to lock in mid-decade deliveries.
Related: Southwest Airlines expands again, adds three more cities to its route map
Southwest is evaluating the A220 and MAX 7 to place an order in about a year, the Dallas-based carrier's operations chief Mike Van de Ven said on the call. Deliveries would begin around 2025.
At the end of September, Southwest had orders for 30 MAX 7s due by 2024, its latest fleet plan shows. It flew 496 737-700s each seating 143 passengers.
The MAX grounding appears to be the straw that broke the back of Southwest's long-standing exclusive relationship with Boeing. Shortly before the suspension began in March 2019, Kelly told investors that the airline was not considering alternatives to the 737. Things changed quickly.
By that April, The Air Current reported that Southwest representatives had visited Airbus to "kick the proverbial tires" on the A220.
Related: The Boeing 737 MAX is about ready to return to US skies. Will it make it for the holidays?
Now, whether there's a split with Boeing remains to be seen. But Southwest's eye is wandering.
"The A220 and the MAX 7, they're the two players in the marketplace," said Van de Ven. "Both of those airplanes have their strengths and their disadvantages. And we're — we've been looking at both airplanes."
The A220-300 can fly up to 160 passengers in a single-class layout just over 3,900 miles, according to Airbus. The MAX 7 can carry up to 172 flyers for 4,430 miles, according to Boeing. The former has a maximum takeoff weight of 69.9 tons and the latter 79 tons; a lighter-weight jet tends to be more efficient over multiple shorter flights than a heavier one.
The European planemaker is also considering developing a larger A220-500 that would more directly compete in size with the MAX 7. However, in August, Airbus Americas CEO Jeffrey Knittel told FlightGlobal that development of the larger variant was on hold during the crisis.
Related: Why the new Airbus A220 is popular with airlines during the coronavirus pandemic
The A220's seeming advantages over the MAX 7 may not be enough to sway Southwest. The airline is a living example of the benefits of a single fleet, something its leadership has long touted as part of its successful DNA.
And an order would be Boeing's to lose. The Chicago-based planemaker will undoubtedly make a strong play to keep Southwest in the 737 fold.
Airbus spokesperson James Darcy said the planemaker does not comment on airline campaigns.
Boeing spokesperson Jessica Kowal declined to comment.
Related: Southwest Airlines ‘absolutely’ harmed by MAX grounding
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| 4X | Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year. |
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There’s a lot to love about the Amex Gold. It’s a fan favorite thanks to its fantastic bonus-earning rates at restaurants worldwide and at U.S. supermarkets. If you’re hitting the skies soon, you’ll also earn bonus Membership Rewards points on travel. Paired with up to $120 in Uber Cash annually (for U.S. Uber rides or Uber Eats orders, card must be added to Uber app and you can redeem with any Amex card), up to $120 in annual dining statement credits to be used with eligible partners, an up to $84 Dunkin’ credit each year at U.S. Dunkin Donuts and an up to $100 Resy credit annually, there’s no reason that foodies shouldn’t add the Amex Gold to their wallet. These benefits alone are worth more than $400, which offsets the $325 annual fee on the Amex Gold card. Enrollment is required for select benefits. (Partner offer)Pros
- 4 points per dollar spent on dining at restaurants worldwide and U.S. supermarkets (on the first $50,000 in purchases per calendar year; then 1 point per dollar spent thereafter and $25,000 in purchases per calendar year; then 1 point per dollar spent thereafter, respectively)
- 3 points per dollar spent on flights booked directly with the airline or with amextravel.com
- Packed with credits foodies will enjoy
- Solid welcome bonus
Cons
- Not as useful for those living outside the U.S.
- Some may have trouble using Uber and other dining credits
- You may be eligible for as high as 100,000 Membership Rewards® Points after you spend $6,000 in eligible purchases on your new Card in your first 6 months of Card Membership. Welcome offers vary and you may not be eligible for an offer. Apply to know if you’re approved and find out your exact welcome offer amount – all with no credit score impact. If you’re approved and choose to accept the Card, your score may be impacted.
- Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year.
- Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year.
- Earn 3X Membership Rewards® points per dollar spent on flights booked directly with airlines or on AmexTravel.com.
- Earn 2X Membership Rewards® points per dollar spent on prepaid hotels and other eligible purchases booked on AmexTravel.com.
- Earn 1X Membership Rewards® point per dollar spent on all other eligible purchases.
- $120 Uber Cash on Gold: Add your Gold Card to your Uber account and get $10 in Uber Cash each month to use on orders and rides in the U.S. when you select an American Express Card for your transaction. That’s up to $120 Uber Cash annually. Plus, after using your Uber Cash, use your Card to earn 4X Membership Rewards® points for Uber Eats purchases made with restaurants or U.S. supermarkets. Point caps and terms apply.
- $84 Dunkin' Credit: With the $84 Dunkin' Credit, you can earn up to $7 in monthly statement credits after you enroll and pay with the American Express® Gold Card at U.S. Dunkin' locations. Enrollment is required to receive this benefit.
- $100 Resy Credit: Get up to $100 in statement credits each calendar year after you pay with the American Express® Gold Card to dine at U.S. Resy restaurants or make other eligible Resy purchases. That's up to $50 in statement credits semi-annually. Enrollment required.
- $120 Dining Credit: Satisfy your cravings, sweet or savory, with the $120 Dining Credit. Earn up to $10 in statement credits monthly when you pay with the American Express® Gold Card at Grubhub, The Cheesecake Factory, Goldbelly, Wine.com, and Five Guys. Enrollment required.
- Explore over 1,000 upscale hotels worldwide with The Hotel Collection and receive a $100 credit towards eligible charges* with every booking of two nights or more through AmexTravel.com. *Eligible charges vary by property.
- No Foreign Transaction Fees.
- Annual Fee is $325.
- Terms Apply.