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> If the Max doesn't return to service or even if its grounding is prolonged this represents an existential threat to the likes of Southwest as part of the way
by clintonb 7y ago
> If the Max doesn't return to service or even if its grounding is prolonged this represents an existential threat to the likes of Southwest as part of the way they maintain their low margins is by having a fleet with one and only one type rating.
The 737 MAX has the same rating as every 737 that Southwest and others fly. Part of the MCAS controversy stems from the fact that Boeing did not discuss it to avoid needing a new type rating. See https://www.aviationlawmonitor.com/2019/03/accident-investigation-1/the-boeing-737-max-8-controversy-explained/ https://www.aviationlawmonitor.com/2019/03/accident-investig... for more information.
- tyingq 7y agoThey are saying that if the MAX isn't available, Southwest will have to consider buying a completely different aircraft.
- natch 7y agoGood! I like Southwest and would hate to have them off the table as an option for some of my travel.
- clintonb 7y agoYeah...they can buy other 737 variants. The MAX may be one of the most fuel-efficient 737s on the market, but the 737NG line is still in production.
- kn0where 7y agoThey are not going to buy more NGs. The NG is technically still in production but production has wound down significantly. All orders for airlines have been built, and all that remains are orders for the military version and various private customers. It would probably cost somewhat more for Southwest to order NGs now than it did during the production heyday where economies of scale made the plane cheaper to produce. Buying brand-new, less-efficient 737NG planes when competing airlines gradually have more and more A320neos could allow Southwest to keep growing, but might not be a great long term investment. Southwest can keep flying their existing NG fleet for a very long time, however, so they can (and have to) wait for new planes. Southwest isn’t forced to stay with the 737. It’s all about costs. Buying new NGs probably would cost more in the long run than (years from now when the backlong is reduced) starting to operate the A320neo, but far cheaper than either is if the MAX returns to service and they get hefty compensation from Boeing.
- tyingq 7y agoThe A220-300 could also be a reasonable choice.