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South West (LUV) is said to be in talks with Boeing (BA) and General Electric (GE) for a potentially huge order of 737 Max as the carrier seeks to refresh its fleet. Boeing’s stock has plummeted.
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The Air Current reported Thursday that Southwest officials were already in preliminary talks with Boeing and CFM International, the jet engine joint venture between GE Aviation and European Safran, for 300 aircraft.
A deal is at stake for Boeing, according to the Air Current report, as Southwest already flies exclusively on the 737 and is Max’s biggest customer.
But if talks fail due to an engine hitch, Southwest could open up a head-to-head competition with Airbus (EADSY) and its A220s. Raytheon Technologies“(RTX) Pratt & Whitney build the engines for the A220.
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Boeing Stock
Southwestern stocks rose 0.3% to close at 51.42 on the stock market today. Boeing shares fell 0.6% to 210.66, consolidating in a cut base with a buy point of 244.18. GE added 0.5% and the main supplier 737 Max Spirit AeroSystems (SPR) lost 0.4%.
Boeing is in desperate need of new orders for its 737 Max after losing more than 1,000 orders in two fatal crashes and the coronavirus pandemic.
Meanwhile, Southwest wants new jets to be added to its Boeing 737 fleet. The airline has hinted at buying a non-Boeing plane, but the decimation of air travel by the coronavirus pandemic has changed his decision-making process.
During Southwest’s third quarter call results in October, chief operating officer Mike Van de Ven said the carrier would decide over the next year to purchase more Boeing 737 Max-7s, the most small of the family, or to opt for Airbus. A220s. Deliveries would begin in 2025.
Follow Gillian Rich on Twitter for aviation news and more.
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