Southwest orders 150 Boeing 737 MAX jets

Published 7:47 am Tuesday, December 13, 2011

Southwest Airlines has placed the first order for the Boeing Co.’s 737 MAX with a request for 150 of the re-engined planes.

Although Boeing has hundreds of tentative commitments from carriers, Southwest is the first to place a firm order, making the Dallas-based airline the MAX’s launch customer. Southwest will take the first 737 MAX to be delivered in 2017.

Southwest also placed an order for 58 of Boeing’s existing 737 jets.

Southwest’s order is Boeing’s largest in terms of the number of aircraft ordered and dollar value, roughly $19 billion at list prices, Boeing said. Airlines negotiate discounts for large orders.

“Southwest is a special Boeing customer and has been a true partner in the evolution of the 737,” Jim Albaugh, Boeing’s president of commercial airplanes, said in a press statement. “As launch customer for the 737 MAX, Southwest, Boeing and the 737 continue that legacy.”

Southwest is the largest operator of Boeing’s 737 aircraft.

With Southwest’s order, Boeing said it has more than 900 orders and commitments from 13 customers for the 737 MAX.

Boeing launched the re-engined jet in August as an answer to rival Airbus’ A320 new engine option jet, or A320neo. Airbus has more than 1,200 orders for its A320neo, which was launched last December. Boeing said its 737 MAX will have a 7 percent operating cost advantage over the competition.

“Today’s environment demands that we become more fuel efficient and environmentally friendly, and as the launch Customer of the Boeing 737 MAX, we have accomplished both,” Gary Kelly, president of Southwest Airlines said in a statement. “Today’s announcement will allow us to maintain our position as a low-cost provider in the years ahead.”

Last week, Boeing’s Machinists approved a four-year contract that ensured the aerospace company will build the 737 MAX in Renton, where the existing 737 is assembled.

Boeing’s shares were up more than $1 to $71.93 this morning.