Connect with us

Aviation

Southwest exercises 34 options for the new Boeing 737-7 MAX 7s

Published

on

Southwest Airlines has announced it will exercise 34 options into firm orders for the Boeing 737-7 MAX 7. This brings the firm total to 234 aircraft.

In addition, Southwest also has 149 Boeing 737-8 MAX 8 on order through 2031.

The company will use the new aircraft to retire older 737s.

The airline filed this update:

Based on improving revenue trends and ongoing fleet modernization plans, the Company recently entered into a Supplemental Agreement with The Boeing Company (Boeing) to increase its 2022 firm orders by 34 Boeing 737 MAX 7 (MAX 7) aircraft (consisting of two 2022 options exercised and 32 options accelerated and exercised from later years), resulting in 234 firm orders for MAX 7 aircraft.
Additionally, the Company accelerated 32 options into 2023, 16 options into 2024, 16 options into 2025, and added 32 new options into 2026 through 2027, bringing the total firm and option order book to 660 aircraft.
The Company continues to estimate its 2021 total capital expenditures to be approximately $500 million, with minimal aircraft capital spending, and now expects its contractual aircraft capital spending to be approximately $1.5 billion in 20225, compared with its previous guidance of approximately $700 million.
Fleet and capacity plans will continue to evolve as the Company manages through this recovery period, and it will continue to evaluate its remaining 40 MAX options in 2022.
The Company continues to plan to retire 30 to 35 of its Boeing 737-700 aircraft annually, on average, over the next 10 to 15 years; however, with its cost-effective order book, the Company retains significant flexibility to manage its fleet size, including opportunities to accelerate fleet modernization efforts if growth opportunities do not materialize.
Additional information regarding the Company’s delivery schedule is included in the following table.
New 737 Delivery Schedule:

The Boeing Company
MAX 7
Firm Orders
MAX 8
Firm Orders
MAX 7 or 8 Options Additional MAX 8s Total
2021 19 9 28 (a)
2022 64 40 104
2023 30 70 100
2024 30 56 86
2025 30 56 86
2026 15 15 40 70
2027 15 15 6 36
2028 15 15 30
2029 20 30 50
2030 15 45 60
2031 10 10
234 149 (b) 268 9 (c) 660
(a) Includes 20 737 MAX 8s delivered as of March 31, 2021, consisting of 12 owned and 8 leased aircraft.
(b) The Company has flexibility to designate firm orders or options as MAX 7 or MAX 8, upon written advance notification as stated in the contract.
(c) These 9 additional MAX 8 aircraft are leases from various third parties, including 8 leased MAX 8 aircraft delivered in first quarter 2021. The Company also received 7 leased MAX 8 aircraft in fourth quarter 2020, for a total of 16 MAX 8 operating leased aircraft from third parties in 2020 and 2021, combined.

Previously on March 29, 2021 the company issued this statement:

Southwest Airlines has announced the completion of its previously disclosed discussions with The Boeing Company (Boeing) regarding the restructuring of its delivery schedule for MAX aircraft. The Company has completed the multi-year evaluation of the successor aircraft to its Boeing 737-700 model, with the selection of the Boeing 737 MAX 7 aircraft. Southwest Airlines® and Boeing reached agreement on 100 firm orders for MAX 7 aircraft, with the first 30 scheduled to be delivered in 2022. This agreement underscores Southwest’s commitment to continued modernization of its fleet with more fuel-efficient and climate-friendly aircraft. It also positions Southwest to capitalize on growth opportunities, when they arise.

As part of the agreement, the Company also converted 70 MAX 8 firm orders to MAX 7 firm orders and added 155 MAX options for MAX 7 or MAX 8 aircraft for years 2022 through 2029. These order book additions and revisions result in a new total of 349 MAX firm orders (200 MAX 7 and 149 MAX 8) and 270 MAX options for MAX 7 or MAX 8 aircraft for years 2021 through 2031. The Company’s previous order book consisted of 249 MAX firm orders (30 MAX 7 and 219 MAX 8) and 115 MAX options for MAX 7 or MAX 8 aircraft for years 2021 through 2026. The Company continues to expect delivery of 28 MAX 8 aircraft in total this year (19 from Boeing and 9 from third-party lessors), as well as 17 737-700 retirements, ending 2021 with 69 MAX 8 aircraft and 729 total aircraft.

This announcement reinforces the Company’s confidence in the 737 MAX as the future of the Southwest fleet. This cost-effective order book with Boeing allows the Company to maintain the operational efficiencies of an all-Boeing 737 fleet to support its low-cost, point-to-point route network. The Company was the launch Customer of the MAX 8 and is scheduled to be the launch Customer of the MAX 7 after also launching prior 737 generations, including the -300, -500, and -700 series.

The Company expects more than half of the 737 MAX aircraft in its firm order book will replace a significant amount of its 462 737-700 aircraft over the next 10 to 15 years to support the modernization of its fleet, a key component of its environmental sustainability efforts. Southwest is proud of its fuel efficiency improvement of nearly 50 percent since 20002, and the billions of dollars in capital expenditures committed to the 737 MAX order book reinforces the airline’s commitment to further improve fuel efficiency and reduce carbon emissions.

The Company’s flight schedules are currently published and available for sale through August 16, 2021. The Company remains cautious in this uncertain environment where travel demand remains depressed due to the negative financial effects of the COVID-19 pandemic; as such, available seat mile (ASMs, or capacity) plans have not been refined beyond May 2021. The Company will continue to plan for multiple fleet and capacity scenarios; however, the refreshed 737 MAX order book and predominantly owned 737-700 fleet is intended to provide a high degree of flexibility for the Company to manage fleet retirements, growth opportunities, and capital spending in a variety of economic environments. Additional information regarding the Company’s delivery schedule is included in the accompanying table.

NEW 737 DELIVERY SCHEDULE

New 737 Delivery Schedule footnotes:

  1. The Company has flexibility to designate firm orders or options as MAX 7 or MAX 8, upon written advance notification as stated in the contract.
  2. The 9 additional MAX 8 aircraft shown above are leases to be acquired from various third parties. The Company also received 7 leased MAX 8 aircraft in fourth quarter 2020, for a total of 16 MAX 8 operating leased aircraft from third parties in 2020 and 2021, combined.

PREVIOUS 737 DELIVERY SCHEDULE

Previous 737 Delivery Schedule footnote:

  1. The ‘Previous 737 Delivery Schedule’ shown above is for reference and comparative purposes only. It should no longer be relied upon. See ‘New 737 Delivery Schedule’ for the Company’s current aircraft order book.

Coinsmart. Beste Bitcoin-Börse in Europa
Source: https://worldairlinenews.com/2021/06/09/southwest-exercises-34-options-for-the-new-boeing-737-7-max-7s/

Aviation

Game on as Virgin sends Qantas’ market share below 70%

Published

on

Virgin and Qantas shot together (Seth Jaworski)

The reborn Virgin Australia has knocked Qantas’ post-COVID domestic market share down from 74 per cent in December to 69 per cent in March.

The decrease, revealed in the latest ACCC report monitoring network expansion, came alongside Virgin increasing its share from 24 per cent to 28 per cent, with Rex holding steady at 2 per cent.

Today’s figures are hugely significant because Qantas chief executive Alan Joyce has repeatedly insisted his business would take at least 70 per cent of the domestic industry when the pandemic recedes.

With Virgin also recently expanding its fleet and staffing levels, Joyce’s prediction now looks uncertain.

Today’s ACCC report is the fourth into the aviation industry in response to a request by Treasurer Josh Frydenburg in June last year.

It shows that 18 per cent of Australian domestic passengers flew on routes where there was a choice of three airline groups, compared with the pre-pandemic figure of 1.5 per cent. That number is expected to have increased since March due to Rex’s expansion.

“Passengers flying Melbourne–Gold Coast, Melbourne–Adelaide and Sydney–Gold Coast now have a choice of four airlines, as Qantas, Jetstar, Virgin and Rex are all operating on the routes,” ACCC chair Rod Sims said.

PROMOTED CONTENT

“The impact of increased competition can be seen on all of Rex’s new intercity routes, including Sydney–Melbourne where airfares fell to their lowest level in a decade following Rex’s entry.”

The investigation also revealed total passenger numbers in March 2021 were 55 per cent of pre-pandemic numbers, up from 41 per cent in December 2020.

“Prior to the recent Victorian outbreaks, the domestic airline industry had experienced relatively fewer and less significant disruptions for a number of months, and the combination of cheaper airfares and growing consumer confidence to travel interstate was critical to the recovery,” Sims said.

Coincidently, Qantas on Thursday announced it would increase its capacity to 107 per cent of pre-COVID levels and Jetstar to 120 per cent.

The move has been made possible because the airline group negotiated a new deal to utilise up to 18 of Alliance’s E190s, up from an initial 14. This then allowed it to shift its larger 737s to other domestic routes.

Finally, Jetstar will temporarily redeploy three A320s from Jetstar Asia in Singapore to increase its capacity in Australia, alongside the six A320s already on loan from Jetstar Japan.

Qantas Group chief executive Alan Joyce said the new strategy was to “think creatively” about how the business uses its fleet.

“Victoria represents about 20 per cent of our total network and with restrictions in Melbourne easing and as borders start to reopen, we expect to see a quick rebound in travel demand just as we have in other cities when lockdowns ended,” said Joyce. “Our forward bookings certainly suggest that’s going to be the case.”

The news marks the latest development in the apparent second “capacity wars”, as airlines look to expand their networks in a world with fewer border restrictions but no international travel.

In May, Virgin said it would hire an extra 250 staff, including pilots, ground staff and baggage handlers, in addition to the 150 new cabin crew roles unveiled last month.

The airline made the announcement alongside revealing plans to launch five new services and significantly increase frequency across its network, including by 30 per cent on the ‘Golden Triangle’.

Meanwhile, Rex said it would rival Virgin and Qantas to fly Melbourne–Canberra from 10 June using one of its new 737s. The move has been delayed due to Victoria’s current lockdown.

It follows last month’s launch of the Sydney-Canberra service, where Rex now operates seven return flights each weekday, alongside flights to the Gold Coast and Adelaide, as well as Sydney and Melbourne.

The new “capacity wars” have seen Rex and Qantas engage in a war of words, which has included Joyce mocking Rex’s “empty aircraft” and Rex deputy chairman John Sharp branding his rival “technically insolvent”.

Coinsmart. Beste Bitcoin-Börse in Europa
Source: https://australianaviation.com.au/2021/06/game-on-as-virgin-sends-qantas-market-share-below-70/

Continue Reading

Aviation

Game on as Virgin sends Qantas’ market share below 70%

Published

on

Virgin and Qantas shot together (Seth Jaworski)

The reborn Virgin Australia has knocked Qantas’ post-COVID domestic market share down from 74 per cent in December to 69 per cent in March.

The decrease, revealed in the latest ACCC report monitoring network expansion, came alongside Virgin increasing its share from 24 per cent to 28 per cent, with Rex holding steady at 2 per cent.

Today’s figures are hugely significant because Qantas chief executive Alan Joyce has repeatedly insisted his business would take at least 70 per cent of the domestic industry when the pandemic recedes.

With Virgin also recently expanding its fleet and staffing levels, Joyce’s prediction now looks uncertain.

Today’s ACCC report is the fourth into the aviation industry in response to a request by Treasurer Josh Frydenburg in June last year.

It shows that 18 per cent of Australian domestic passengers flew on routes where there was a choice of three airline groups, compared with the pre-pandemic figure of 1.5 per cent. That number is expected to have increased since March due to Rex’s expansion.

“Passengers flying Melbourne–Gold Coast, Melbourne–Adelaide and Sydney–Gold Coast now have a choice of four airlines, as Qantas, Jetstar, Virgin and Rex are all operating on the routes,” ACCC chair Rod Sims said.

PROMOTED CONTENT

“The impact of increased competition can be seen on all of Rex’s new intercity routes, including Sydney–Melbourne where airfares fell to their lowest level in a decade following Rex’s entry.”

The investigation also revealed total passenger numbers in March 2021 were 55 per cent of pre-pandemic numbers, up from 41 per cent in December 2020.

“Prior to the recent Victorian outbreaks, the domestic airline industry had experienced relatively fewer and less significant disruptions for a number of months, and the combination of cheaper airfares and growing consumer confidence to travel interstate was critical to the recovery,” Sims said.

Coincidently, Qantas on Thursday announced it would increase its capacity to 107 per cent of pre-COVID levels and Jetstar to 120 per cent.

The move has been made possible because the airline group negotiated a new deal to utilise up to 18 of Alliance’s E190s, up from an initial 14. This then allowed it to shift its larger 737s to other domestic routes.

Finally, Jetstar will temporarily redeploy three A320s from Jetstar Asia in Singapore to increase its capacity in Australia, alongside the six A320s already on loan from Jetstar Japan.

Qantas Group chief executive Alan Joyce said the new strategy was to “think creatively” about how the business uses its fleet.

“Victoria represents about 20 per cent of our total network and with restrictions in Melbourne easing and as borders start to reopen, we expect to see a quick rebound in travel demand just as we have in other cities when lockdowns ended,” said Joyce. “Our forward bookings certainly suggest that’s going to be the case.”

The news marks the latest development in the apparent second “capacity wars”, as airlines look to expand their networks in a world with fewer border restrictions but no international travel.

In May, Virgin said it would hire an extra 250 staff, including pilots, ground staff and baggage handlers, in addition to the 150 new cabin crew roles unveiled last month.

The airline made the announcement alongside revealing plans to launch five new services and significantly increase frequency across its network, including by 30 per cent on the ‘Golden Triangle’.

Meanwhile, Rex said it would rival Virgin and Qantas to fly Melbourne–Canberra from 10 June using one of its new 737s. The move has been delayed due to Victoria’s current lockdown.

It follows last month’s launch of the Sydney-Canberra service, where Rex now operates seven return flights each weekday, alongside flights to the Gold Coast and Adelaide, as well as Sydney and Melbourne.

The new “capacity wars” have seen Rex and Qantas engage in a war of words, which has included Joyce mocking Rex’s “empty aircraft” and Rex deputy chairman John Sharp branding his rival “technically insolvent”.

Coinsmart. Beste Bitcoin-Börse in Europa
Source: https://australianaviation.com.au/2021/06/game-on-as-virgin-sends-qantas-market-share-below-70/

Continue Reading

Aviation

Indian Airlines Slowly Begins Recovering From Second Wave

Published

on

As the worst of the second wave passes India, airlines have slowly begun ramping up schedules. This week saw daily domestic flights rise to over 1,000 for the first time since May. Airlines have also seen ticket bookings increasing, hopefully kicking off another recovery for the beleaguered industry.

Bangalore Airport IndiGo Getty
Airlines might quickly reach the government’s reduced capacity limits as a domestic recovery begins. Photo: Getty Images

Green shoots

According to data from RadarBox.com, Indian airlines have been ramping up flights since the start of June. Traffic bottomed out in mid-May, with all airlines only operating 777 daily domestic flights during this period. This was a drop of 64% compared to February 2021 traffic and 70% relative to pre-pandemic levels.

However, the worst seems to be over for Indian aviation. Since 28th May, daily flights have slowly been increasing. As of today, airlines are operating 1,060 daily flights, a 36% increase from the lows of the second wave. If all goes well, airlines could reach the government-imposed 50% capacity cap by the end of the summer.

As airlines hit the 1,000 flight mark, passenger confidence seems to be quickly rising domestically. Graph: RadarBox.com

India’s biggest airline, IndiGo, has confirmed the recovery of passenger traffic. In an interview, CEO Ronojoy Dutta said about passenger numbers,

“It [traffic] bottomed out on May 18 and at that point we had gone down from 1,200 departures to about 400 departures. That is how bad it was. Since then, we have started recovering. From May 18 to June 6, the numbers (of passengers) are picking up nicely.”

Stay informed: Sign up for our daily and weekly aviation news digests.

International remains weak

While domestic traffic continues its upward climb, international traffic continues its downward spiral. Nearly every major market has banned or restricted travel from India, resulting in airlines scaling back their schedules drastically. From a peak of 600 daily international flights in late March, airlines are only operating 294 daily flights today.

With countries like the UAE, UK, and US all banning most travel from India, traffic continues to fall. Graph: RadarBox.com

Concerningly, traffic continues to fall every week as travel restrictions continue to drag on. As cases in India fall to their lowest point in months, airlines will be hoping to see border controls slowly be eased to allow in Indians. However, the threat of new strains means that it could still be weeks or months before such a recovery begins.

Bleeding

As airlines continue to struggle with a fraction of passenger traffic, losses continue to mount. Low-cost carrier SpiceJet did not pay employees their full salaries for May, “deferring” it due to a major cash crunch. Similarly, GoAir and SpiceJet entered an informal agreement to combine flights in case of low loads, an unprecedented move.

SpiceJet 737
Indian airlines are quickly facing cash shortages as the second wave drags on. Photo: Getty Images

As cases fall, airlines are desperately hoping for a certain degree of “revenge travel” as people step out for the first time in months. However, any such travel will depend on local restrictions and the lifting of onerous testing requirements by states. For now, airlines are preparing for another rough year as COVID-19 pummels the industry again.

What do you think about the future of India’s aviation recovery? Let us know in the comments.

Coinsmart. Beste Bitcoin-Börse in Europa
Source: https://simpleflying.com/indian-airlines-domestic-recovery/

Continue Reading

Aviation

Indian Airlines Slowly Begins Recovering From Second Wave

Published

on

As the worst of the second wave passes India, airlines have slowly begun ramping up schedules. This week saw daily domestic flights rise to over 1,000 for the first time since May. Airlines have also seen ticket bookings increasing, hopefully kicking off another recovery for the beleaguered industry.

Bangalore Airport IndiGo Getty
Airlines might quickly reach the government’s reduced capacity limits as a domestic recovery begins. Photo: Getty Images

Green shoots

According to data from RadarBox.com, Indian airlines have been ramping up flights since the start of June. Traffic bottomed out in mid-May, with all airlines only operating 777 daily domestic flights during this period. This was a drop of 64% compared to February 2021 traffic and 70% relative to pre-pandemic levels.

However, the worst seems to be over for Indian aviation. Since 28th May, daily flights have slowly been increasing. As of today, airlines are operating 1,060 daily flights, a 36% increase from the lows of the second wave. If all goes well, airlines could reach the government-imposed 50% capacity cap by the end of the summer.

As airlines hit the 1,000 flight mark, passenger confidence seems to be quickly rising domestically. Graph: RadarBox.com

India’s biggest airline, IndiGo, has confirmed the recovery of passenger traffic. In an interview, CEO Ronojoy Dutta said about passenger numbers,

“It [traffic] bottomed out on May 18 and at that point we had gone down from 1,200 departures to about 400 departures. That is how bad it was. Since then, we have started recovering. From May 18 to June 6, the numbers (of passengers) are picking up nicely.”

Stay informed: Sign up for our daily and weekly aviation news digests.

International remains weak

While domestic traffic continues its upward climb, international traffic continues its downward spiral. Nearly every major market has banned or restricted travel from India, resulting in airlines scaling back their schedules drastically. From a peak of 600 daily international flights in late March, airlines are only operating 294 daily flights today.

With countries like the UAE, UK, and US all banning most travel from India, traffic continues to fall. Graph: RadarBox.com

Concerningly, traffic continues to fall every week as travel restrictions continue to drag on. As cases in India fall to their lowest point in months, airlines will be hoping to see border controls slowly be eased to allow in Indians. However, the threat of new strains means that it could still be weeks or months before such a recovery begins.

Bleeding

As airlines continue to struggle with a fraction of passenger traffic, losses continue to mount. Low-cost carrier SpiceJet did not pay employees their full salaries for May, “deferring” it due to a major cash crunch. Similarly, GoAir and SpiceJet entered an informal agreement to combine flights in case of low loads, an unprecedented move.

SpiceJet 737
Indian airlines are quickly facing cash shortages as the second wave drags on. Photo: Getty Images

As cases fall, airlines are desperately hoping for a certain degree of “revenge travel” as people step out for the first time in months. However, any such travel will depend on local restrictions and the lifting of onerous testing requirements by states. For now, airlines are preparing for another rough year as COVID-19 pummels the industry again.

What do you think about the future of India’s aviation recovery? Let us know in the comments.

Coinsmart. Beste Bitcoin-Börse in Europa
Source: https://simpleflying.com/indian-airlines-domestic-recovery/

Continue Reading
Esports5 days ago

Lost Ark Founders Pack: Everything You Need to Know

Aviation4 days ago

Delta Air Lines Flight Diverts To Oklahoma Over Unruly Off-Duty Flight Attendant

Aviation3 days ago

Spirit Airlines Just Made The Best Argument For Lifting LaGuardia’s Perimeter Rule

Energy5 days ago

Daiki Axis Co., Ltd. (4245, First Section, Tokyo Stock Exchange) Overview of Operating Performance for the First Three Months Ended March 31, 2021

Esports2 days ago

Clash of Clans June 2021 Update patch notes

Esports4 days ago

Genshin Impact Murals: Location Guide

Blockchain3 days ago

Africa Leading Bitcoin P2P Trading Volume Growth in 2021

Esports2 days ago

Legends of Runeterra Patch 2.10.0 brings bug fixes and Pool Party cosmetics

Blockchain5 days ago

DCR Technical Analysis: Look for Support Levels of $130.13 and $126.01

Aviation3 days ago

Boeing 727 Set To Be Turned Into Luxury Hotel Experience

Gaming4 days ago

Forza Horizon 5 Announced, Launches November 9

Cyber Security5 days ago

Cybersecurity Degrees in Colorado

Esports4 days ago

Genshin Impact Music Rock Puzzle Guide

Big Data3 days ago

In El Salvador’s bitcoin beach town, digital divide slows uptake

Blockchain2 days ago

Since It Adopted Bitcoin As Legal Tender, The World Is Looking At El Salvador

Esports9 hours ago

World of Warcraft 9.1 Release Date: When is it?

Blockchain4 days ago

Ripple price analysis: Ripple retests $0.80 support, prepares to push higher? 

Blockchain4 days ago

Binance Is Launching a Decentralized NFT Platform

HRTech2 days ago

Pre-Owned Luxury Car dealer Luxury Ride to add 80 Employees across functions to boost growth

Esports4 days ago

Jurassic World Evolution 2 Release Date: When is it?

Trending