B-737 Delivery Slots

[goingboeing]

SWA has just bought up 79 more B-737 Delivery slots and have 140 undelivered B-737's on order.[2007-2012]
With other airlines including several foreign carriers the B-737 assembly line slots are being bought up.AA is once again a Johnny come lately.

SWA is playing for keeps in the domestic market with the aircraft to do it with.

 

[Hopeful]

SWA has just bought up 79 more B-737 Delivery slots and have 140 undelivered B-737's on order.[2007-2012]
With other airlines including several foreign carriers the B-737 assembly line slots are being bought up.AA is once again a Johnny come lately.

SWA is playing for keeps in the domestic market with the aircraft to do it with.

You make it sound like Southwest is an upstart carrier. They've been around for 35 years and only operate the 737. Did you ever think that some of these newer aircraft are replacing some very old aircraft?

Playing for keeps in the domestic market????????????????????????????????????????????



They only have a domestic market!

 

[fix_airplanes]

Some of the WN 737 orders are "replacement" planes for "retiring" planes.

 

[eolesen]

Not according to CEO Gary Kelly -- these are all incremental aircraft. No retirements for 2006 or 2007.

 

[ramper_in_las]

Some of the WN 737 orders are "replacement" planes for "retiring" planes.

do you know which are the first to go into retirement???

 

[goingboeing]

You make it sound like Southwest is an upstart carrier. They've been around for 35 years and only operate the 737. Did you ever think that some of these newer aircraft are replacing some very old aircraft?

Playing for keeps in the domestic market????????????????????????????????????????????
They only have a domestic market!

Da! I thought SWA had direct flights to Europe everyday with Airbus 320'S and they just started as scheduled air carrier last month!!!!!!!!!!!!!!!

 

[Hopeful]

SWA has just bought up 79 more B-737 Delivery slots and have 140 undelivered B-737's on order.[2007-2012]
With other airlines including several foreign carriers the B-737 assembly line slots are being bought up.AA is once again a Johnny come lately.

SWA is playing for keeps in the domestic market with the aircraft to do it with.

DA!
SWA playing for keeps? AFTER 35 YEARS IN BUSINESS!!!!!!!!!!!!!!!!!!!!!!!!!!!!

What a profound statement!

 

[andyperkins]

Southwest orders 79 737s as it reports 3.4% profit increase
Friday April 21, 2006
Southwest Airlines managed to stave off rising unit costs and a 79.6% jump in fuel expenses to record a first-quarter profit of $61 million, up 3.4% over the $59 million earned in the three months ended March 31, 2005.The carrier also announced yesterday that it will exercise options for 79 737-700s for delivery from 2007 through 2012, bringing its firm orders to 140.

Southwest's quarterly revenues topped the $2 billion mark for the first time, increasing 21.4% to $2.02 billion. Expenses rose 21.4% over the year-ago quarter to $1.92 billion. Operating income climbed 21% to $98 million from $81 million.

"We are pleased with the continued and consistent improvement in our earnings performance," CEO Gary Kelly said. "Thus far, strong load factor and revenue trends have continued in April, and customer bookings for the remainder of second-quarter 2006 are strong."

Traffic increased 15.4% to 15.28 billion RPMs on a 9.9% gain in revenue passengers to 19.2 million. Capacity rose 9.1% to 22.08 billion ASMs, resulting in a record first-quarter load factor of 69.2%, up 3.8 points over the year-ago period. Average passenger fare grew 10.7% to $100.94, lifting yield 5.4% to 12.68 cents, while RASM jumped 11.3% to 9.15 cents. Fuel prices had an adverse effect on unit costs, boosting CASM 11.3% to 8.7 cents. Excluding fuel, CASM dipped 0.2% to 6.43 cents, which was in line with expectations, according to Kelly.

"We are optimistic we can achieve our full-year 2006 goal of flat year-over-year unit costs, excluding fuel, at 6.48 cents," Kelly said. The airline is more than 75% hedged for the current quarter with fuel costs capped at $36 per barrel and more than 70% hedged for the remainder of 2006 at the same rate.

Southwest will take 36 aircraft next year, 30 the following year, 18 in 2009 and 10 in each year from 2010 through 2012. It holds 116 options with delivery positions in 2008-12 and 54 purchase rights for delivery through 2014. CFMI valued the new firm engine orders at $1 billion at list prices.


by Brian Straus

All of us at the NEW U need to get our focus on the customers and stop this cockroach from spreading any more!

 

[luvn737s]

Southwest knows these are the last days of easy money for a while and they are trying to position themselves well with new airplanes to weather the upcoming storm. This announcement isn't so much about what they'll do today, but how they'll fare tomarrow.

 

[bwipilot]

Southwest knows these are the last days of easy money for a while and they are trying to position themselves well with new airplanes to weather the upcoming storm. This announcement isn't so much about what they'll do today, but how they'll fare tomarrow.

I'd say it's more of holding the delivery positions SWA currently has. The 737 line is pretty much fully spoken for. With the revenue picture improving SWA is still looking for good "used" 737s. The current fuel picture makes the problem a good one to have though.

 

[NAPAUS]

Southwest orders 79 737s as it reports 3.4% profit increase
Friday April 21, 2006
Southwest Airlines managed to stave off rising unit costs and a 79.6% jump in fuel expenses to record a first-quarter profit of $61 million, up 3.4% over the $59 million earned in the three months ended March 31, 2005.The carrier also announced yesterday that it will exercise options for 79 737-700s for delivery from 2007 through 2012, bringing its firm orders to 140.

Southwest's quarterly revenues topped the $2 billion mark for the first time, increasing 21.4% to $2.02 billion. Expenses rose 21.4% over the year-ago quarter to $1.92 billion. Operating income climbed 21% to $98 million from $81 million.

"We are pleased with the continued and consistent improvement in our earnings performance," CEO Gary Kelly said. "Thus far, strong load factor and revenue trends have continued in April, and customer bookings for the remainder of second-quarter 2006 are strong."

Traffic increased 15.4% to 15.28 billion RPMs on a 9.9% gain in revenue passengers to 19.2 million. Capacity rose 9.1% to 22.08 billion ASMs, resulting in a record first-quarter load factor of 69.2%, up 3.8 points over the year-ago period. Average passenger fare grew 10.7% to $100.94, lifting yield 5.4% to 12.68 cents, while RASM jumped 11.3% to 9.15 cents. Fuel prices had an adverse effect on unit costs, boosting CASM 11.3% to 8.7 cents. Excluding fuel, CASM dipped 0.2% to 6.43 cents, which was in line with expectations, according to Kelly.

"We are optimistic we can achieve our full-year 2006 goal of flat year-over-year unit costs, excluding fuel, at 6.48 cents," Kelly said. The airline is more than 75% hedged for the current quarter with fuel costs capped at $36 per barrel and more than 70% hedged for the remainder of 2006 at the same rate.

Southwest will take 36 aircraft next year, 30 the following year, 18 in 2009 and 10 in each year from 2010 through 2012. It holds 116 options with delivery positions in 2008-12 and 54 purchase rights for delivery through 2014. CFMI valued the new firm engine orders at $1 billion at list prices.
by Brian Straus

All of us at the NEW U need to get our focus on the customers and stop this cockroach from spreading any more!

Excellent posting. U needs to get it self profitable and them move frward internationally and solidfy itself as a REAL player and not one that it was in the past.

 

[sfb]

Not according to CEO Gary Kelly -- these are all incremental aircraft. No retirements for 2006 or 2007.

They shouldn't need to retire any of the -300's until 2008 or later; Southwest depreciates based on an expected useful life of 23 to 25 years, and the very first -300's showed up in 1984. The last 737-200's were all retired fairly quickly given that the diminishing size of the fleet started to mean higher scheduling and maintenance costs to support just a handful of aircraft.

The far smaller numbers of orders in 2009-2012 would seem to reflect an appropriately conservative plan for being several years out; those orders probably only cover expected retirements for those years. Southwest's options and purchase rights, however, would allow them to take 40 aircraft per year in 2008 and beyond.

 

[mga707]

They shouldn't need to retire any of the -300's until 2008 or later; Southwest depreciates based on an expected useful life of 23 to 25 years, and the very first -300's showed up in 1984.

At the very end of '84. The first, N300SW "The Spirit of Kitty Hawk", was delivered on Nov 30. First revenue flight was on Dec 17 (Wright Bros anniversary date), flying the original DAL-HOU-SAT-DAL 'Texas Triangle'.

 

[MCI transplant]

Not according to CEO Gary Kelly -- these are all incremental aircraft. No retirements for 2006 or 2007.

<_< ----- More flights going into Love Field? At this rate, they'll be numero uno fairly soon! :rant:

 

[lpbrian]

Who cares about 737 delivery positions. 787 slots are faaaar more important. Besides, the 737 will be obsolete in 2012. The 797 will be the one to watch, the key to AA's future.