Report: Boeing, Southwest on verge of 737 MAX deal

Published 4:20 pm Wednesday, December 7, 2011

Southwest Airlines and the Boeing Co. are close to reaching a tentative deal for 100 737 MAX jets, The Wall Street Journal reported Wednesday.

Southwest is the largest operator of Boeing 737s.

The deal would be a boost to Boeing’s re-engined 737 MAX jet, which is competing against Airbus’ A320 new engine option, or A320neo.

Boeing launched its 737 MAX in August, roughly eight months after Airbus said it was re-engining its single-aisle A320.

The A320neo has won about 1,400 orders and commitments while Boeing says its 737 MAX has 700 commitments. No firm orders for the 737 MAX have been announced.

It’s unclear whether Southwest’s request is included in the 700 commitments Boeing already says it has.

Citing unnamed people familiar with the matter, the WSJ reported that the Southwest deal could be announced in the coming weeks.

Boeing Machinists are voting today on a contract that would guarantee the 737 MAX would be built in Renton, where its existing 737 is assembled.

Also on Wednesday, Bloomberg reported that FedEx likely will order 30 Boeing widebody freighters as early as next week.