If a Customer chooses not to travel, they also may request a full refund of refundable tickets back to the original form of payment. On the company's first-quarter earnings call, management announced that it had reached an agreement with Boeing to take no more than 48 aircraft deliveries through the end of 2021. } height: 6px; **Earn between 12/1/2020 and 3/31/2021 on up to $2,000 spent per month. Het toestel had alleen bemanningsleden aan boord. } These changes have been reviewed and approved by the FAA, and, with these enhancements, I am confident we will be ready to operate the MAX in accordance with the FAA’s requirements. Southwest Airlines will become the second airline to operate the new Boeing 737 MAX 8 aircraft later this year (after Norwegian starts services this summer).. } The COVID-19 pandemic changed that in a hurry. If Southwest Airlines is trimming its fleet plan despite those positive factors, it doesn't bode well for Boeing's efforts to work down its inventory of about 450 stored 737 MAX jets. Yes, some airlines are quietly working with concerned travelers. Continue Reading Below The deliveries include 16 … Law360 (January 6, 2021, 10:42 PM EST) -- Boeing 737 Max 8 passengers … © 2021 Southwest Airlines Co. All Rights Reserved. As always, we appreciate your support. Although WN’s entire fleet is exclusively Boeing aircraft, the company has winked several times at the Neo family of Airbus. On August 13, 2015, the first 737 MAX fuselage completed assembly at Spirit Aerosystems in Wichita, Kansas, for a test aircraft that would eventually be delivered to launch customer Southwest Airlines. I have personally been in contact with Boeing and the FAA regarding the changes and have been briefed by our internal experts. On Wednesday, the airline disclosed an updated agreement with Boeing. In other words, the low-fare airline will fork over little or no cash for the 19 aircraft it is buying from Boeing directly over this period. Gary Kelly, Chairman of the board and CEO explained to staff and passengers in this memo which we reproduce in full. left: 277px !important; By Melissa Angell. Remove MAX from storage. Southwest Airlines continues to await guidance from Boeing and the Federal Aviation Administration (FAA) on the impending 737 MAX software enhancements and training requirements. Cumulative Growth of a $10,000 Investment in Stock Advisor, Southwest Airlines Defers Boeing 737 MAX Deliveries (Again) @themotleyfool #stocks $BA $LUV, Boeing Agrees to $244 Million Penalty for 737 MAX Flaws, Boeing to Pay $2.5 Billion to Settle 737 MAX Criminal Probe, Why Boeing Stock Is Flying Higher Tuesday Afternoon, Boeing 737 MAX Deliveries Resume: 1 Big Yellow Flag, Copyright, Trademark and Patent Information. © 2021 Southwest Airlines Co.All Rights Reserved. Southwest submits all materials to the F.A.A for review and approval. Phase 2, F.A.A approval achieved: Launch return to service plan. ORLANDO - Een Boeing 737 MAX 8 van Southwest Airlines is dinsdag met motorproblemen teruggekeerd naar de luchthaven van het Amerikaanse Orlando. Boeing has made changes to the flight control system that now compares input from two angle of attack sensors as opposed to one; the aircraft only responds if data from both sensors agree and only activates once per event; and Pilots always have the ability to override the aircraft’s input. Southwest Airlines CEO Gary Kelly has been in the role since 2004. If we had a cause for doubt of the Safety of our fleet—or any subset of it—simply put, the planes would not fly. Phase 1, Preparing 737 MAX materials for F.A.A review. Additionally, Southwest will conduct multiple readiness flights on each of our 34 MAX aircraft and complete thousands of hours of work, inspections, and the software updates before any of our Customers board a Southwest 737 MAX. Southwest will need three- to four-months to modify its MAX 8s and train pilots before it will resume flying the planes, Van de Ven said. (Southwest is leasing the other 16 737 MAX jets scheduled to arrive by the end of 2021.) html[lang="es"] div.footer div.flex-placement > div:nth-child(8) { As air travel demand plunged, Southwest quickly moved to reduce its near-term aircraft deliveries. The reluctance of its best customer to take delivery of new aircraft in 2021 highlights how the recertification of the 737 MAX and rollout of COVID-19 vaccines didn't solve all of Boeing's problems. By April, Southwest had made dramatic cuts to its fleet plan due to the pandemic. Southwest Airlines is reportedly in talks with Boeing and aircraft lessors to acquire as many as 30 737 MAX jets that no longer have their original buyers.. There is information in the previous heading. Yes! } Our Southwest Pilot Leadership Team has reviewed and expressed confidence in the MAX software and training updates following Boeing’s enhancements to the aircraft. left: 482px !important; white-space: normal; content: "(Temporarily suspended. .compare-fares-secondary--row:nth-of-type(5) .compare-fares-secondary--header-cell .compare-fares-secondary--label-addendum::after { That will leave it with about 747 aircraft in its fleet at the end of next year, in line with its fleet count a year ago. Apparently, that didn't come close to satisfying the full liability. height: 1px; In fact, before the 737 MAX was grounded, Southwest Pilots flew almost 40,000 flights on the aircraft, which is more than 89,000 flight hours. In the meantime, it will incur elevated interest expense and won't be able to distribute much cash to shareholders. When that’s happened, and with the MAXs available to fly again, you could expect Southwest’s current expansionary tactics to continue. The Southwest Pilot Leadership Team has reviewed the software and training updates proposed by Boeing, and required by the FAA, and has expressed confidence that the changes will add another layer of Safety to the MAX. Indicates external site which may or may not meet accessibility guidelines, © 2021 Southwest Airlines only operates 737s, so the grounding of the 737 MAX in early 2019 upended its fleet plan. Southwest Airlines has been eyeing a replacement for its aging fleet of 737-700s for some time. html[lang="es"] div.footer div.flex-placement > div:nth-child(10) { I am going to be flying on the MAX before we return the aircraft to service—and the same is true for many other Southwest Leaders. Train all active Southwest Pilots. Southwest launched their service for the 737 MAX 8 aircraft in 2018. $69 annual fee. left: 277px !important; There is much work to be done before our MAX aircraft will resume service, which we estimate will likely take place no sooner than the second quarter of 2021. .air-booking-select-compare-fares-secondary .compare-fares-secondary--header-cell { 120 plus days. } We know the 737, we train in the 737, and we take our mission to return the 737 MAX safely to the skies very seriously. However, it will take years for the company to repair its balance sheet. "The company currently estimates that the Max will return to revenue service in March 2021 after all active pilots have received updated, Max-related training," Southwest said in a regulatory filing . We will continue updating the site with additional information as we move forward. Southwest Airlines has revealed in a stock exchange filing today that it expects to take delivery of 35 Boeing 737 MAX over the course of 2021. That said, Southwest Airlines has arguably the best balance sheet in the airline industry and has been aggressively adding new cities to its route network in recent months. At Southwest, we only operate Boeing 737s, and our Pilots are highly trained and experienced at flying the aircraft. Earn up to 10,000 points per night on hotel stays. (opens popup). As a result, we have removed our 34 MAX 8 aircraft from scheduled service. Southwest’s goal is to provide transparency and flexibility to Customers when the 737 MAX 8 returns to service. External site which may or may not meet accessibility guidelines. The US low-cost pioneer has now loaded its 737 MAX flights into its booking system, revealing the first routes the type will operate.. Southwest Airlines will begin 737 MAX scheduled services on 1st October 2017 with ten aircraft. right: 185px !important; Southwest Says Its 737 Max 8 Planes Are Safe — but It Will Waive Change Fees for Nervous Travelers (Video) Airlines around the world are grounding 737 Max 8 planes — here’s why the U.S. isn’t. Last month, the FAA recertified the Boeing 737 MAX for commercial use in the USA. Southwest Airlines has sent a team of mechanics to Victorville, California, to start the long process of bringing its 34 Boeing 737 MAX jets out of their desert hibernation, after the planes' permission to fly was restored. Southwest will also require active Pilots to re-take our original 737 MAX 8 computer-based differences training as a refresher to complement the FAA-required training. There will be no fare difference charged so long as the new flight includes the same origin and destination cities. Deferring 13 737 MAX deliveries out of 2021 is a relatively small change. } Southwest's new seats feature an adjustable headrest and the widest economy seat in the 737 market. Founded in 1993 by brothers Tom and David Gardner, The Motley Fool helps millions of people attain financial freedom through our website, podcasts, books, newspaper column, radio show, and premium investing services. width:556px !important While the natural pick would likely be the MAX 7, the airline is contemplating breaking with tradition and is inspecting the potential for the Airbus A220. The temporary policy flexibilities will include allowing Customers booked on a 737 MAX 8 to request a change to a flight on one of our 737-700 or 737-800 aircraft as they approach their departure date, subject to seat availability. Without getting too technical, we understand that Boeing has made changes to the flight control system that now compares input from two angle of attack sensors as opposed to one; the aircraft only responds if data from both sensors agree and only activates once per event; and Pilots always have the ability to override the aircraft’s input. Market data powered by FactSet and Web Financial Group. The Boeing 737 MAX will not enter commercial service sooner than the second quarter of 2021, airline CEO Gary Kelly said. Southwest has lots to do before the MAX returns to service. Predelivery payments that the airline already made and delivery credits compensating Southwest for the cost of the 737 MAX grounding are covering the purchase price. Entering 2020, Southwest Airlines (NYSE:LUV) was desperate to get the Boeing (NYSE:BA) 737 MAX back in its fleet as soon as possible. )"; Southwest and American Airlines operate a combined 58 Boeing 737 Max 8s and United has 14 of the larger Max 9s. The U.S. Federal Aviation Administration (FAA) resisted grounding the aircraft until March 13, by which time most other regulators had already done so as a safety precaution. padding-left: 30px; Boeing has … Today, I want to share a few of our thoughts and plans. As of Sept. 30, Boeing had over $28 billion of cash and investments, so it's not in any danger of running out of cash. Our Pilots flew almost 40,000 flights with the MAX prior to the grounding, which is more than 89,000 flight hours. Southwest finalizes training curriculum for Pilots. Each Southwest MAX will fly multiple Readiness Flights with Pilot from our flight Operations Team (without Customers onboard). Stock Advisor launched in February of 2002. This brought to an end a 20-month grounding period following two similar fatal accidents involving the type. Yet while air travel demand will start to recover in 2021, it will remain very low compared to the past few years, weighing heavily on Boeing's aircraft deliveries -- and its cash flow. clip: rect(0,0,0,0); .waiver-message--flight-restriction > ul > li:last-child The first seven of those deliveries should come this month, with the remainder arriving in 2021. display:none; Navigate the calendar using PAGE UP and PAGE DOWN to change the month, you can also hold CONTROL and press the ARROW KEYS to change the day. As of December 2020, Southwest estimates service will resume no sooner than March 2021. Southwest’s new Boeing 737 MAX 8 aircraft didn’t have the inaugural day that the airline had planned for. In 2011, the company signed an order for 280: 250 737 MAX 8 and 30 737 MAX 7. Southwest Airlines now expects to receive just 35 Boeing 737 MAX 8s through the end of 2021. Additionally, aviation regulators from countries around the world have reviewed Boeing’s changes to the aircraft and the FAA’s new requirements. #FlyoutTrigger_5 > div > div > div.overlay-container--flyout-content > div > div.header-flyout--content-section > div:nth-child(3) > a:hover .link--text b * { There is information in the previous heading. First and foremost, there is nothing more sacred to me than the Safety of our Customers and Employees. Southwest will leave Newark and consolidate its New York operations at LaGuardia on Nov. 3. (It issued another $4.9 billion of debt last month, bolstering its liquidity.) Yes, we are. That is a moral obligation that I share with my fellow Southwest Family Members who work, fly, and travel with our own families on these aircraft. Southwest Airlines (LUV) - Get Report shares fell Wednesday after it announced a reduction in the number of Boeing (BA) - Get Report 737 MAX planes it … } margin: -1px; Offer ends 2/8/2021. Before we bring the aircraft back into service, every active Southwest Pilot will undergo FAA-required flight training in a 737 MAX simulator. text-decoration: none !important; Southwest operates a fleet of more than 750 Boeing 737s, and the 34 MAX 8 aircraft account for less than five percent of our daily flights. Yesterday, U.S. Federal Aviation Administration (FAA) re-certified the aircraft. Southwest Airlines Co said on Wednesday it expects to take delivery of 35 737 MAX aircraft from Boeing Co through the end of 2021. } padding-top: 5px; Boeing stock has rallied in recent months on growing optimism that the dual crises of the 737 MAX grounding and the pandemic are ending. Photo: Getty Images A significant aircraft for Southwest. Opens new window. html[lang="es"] div.footer div.flex-placement > b:nth-child(7) { font: italic normal 11px/1 Arial; Southwest Pilots are among the most experienced Boeing 737 aviators in the industry -- in fact, it’s the only aircraft we fly. On this site, we feature a video from Senior Vice President of Air Operations Alan Kasher that explains next steps, including the additional Pilot training that will take place before the MAX will return to service. Follow him on Twitter for the latest news and commentary on the airline industry! Aircraft demand certainly won't stay at today's negligible levels for very long. Southwest Airlines Co said on Wednesday it expects to take delivery of 35 737 MAX aircraft from Boeing Co through the end of 2021. 15 plus days. 737 Max Flyers Seek Cert In Boeing, Southwest RICO Suit. html[lang="es"] div.footer div.flex-placement > b:nth-child(6) { Southwest is to reintroduce the 737 MAX in the 2nd quarter of 2021, somewhat later than other US airlines. color: #636363; We encourage Customers to check aircraft type closer to the scheduled departure date. html[lang="es"] div.footer div.flex-placement > span.swa-icon.swa-icon_small.swa-icon_external-link-box { Southwest Airlines now expects to receive just 35 Boeing 737 MAX 8s through the end of 2021. Moreover, the availability of highly effective COVID-19 vaccines ought to bolster demand by the second half of 2021. Adding insult to injury for Boeing, Southwest Airlines said that it expects aircraft capital spending to be "immaterial" in the fourth quarter of 2020 and 2021. But, says Kelly, there is much work to be done before the MAX aircraft will resume service at Southwest. Additionally, our Flight Operations Team will conduct Readiness Flights by flying each Southwest 737 MAX multiple times, without Customers onboard, prior to welcoming you and our fellow Southwest Employees back onboard. } Photo: Southwest Airlines Training every pilot. To prepare for service, there will be a great deal of work going on behind the scenes to remove Southwest’s 34 MAX aircraft from storage, install the new software, and perform maintenance checks on every aircraft. border: 0; Customers are able to view the scheduled aircraft type on their itinerary. That said, Boeing had already made $828 million of cash payments to Southwest Airlines as part of an initial compensation package. left: 467px !important; } A Southwest Airlines Boeing 737 Max made an emergency landing in Orlando Tuesday because of an engine issue unrelated to recent crashes, the FAA said. .compare-fares-secondary--row:nth-of-type(10) .compare-fares-secondary--header-cell .compare-fares-secondary--label div::after { Southwest Airlines was down over 1% Monday following the crash of an Ethiopian Airlines flight, which marked the second accident involving the Boeing 737 Max aircraft in five months. Our goal throughout this process is to be open and transparent with you every step of the way—just as you’ve come to expect from us. MIAMI – Southwest Airlines (WN) is one of the major users of the Boeing 737 MAX along with Ryanair (FR), with 511 737-700 and 181 737-800NG. { Install software update on every MAX. DALLAS, March 13, 2019 /PRNewswire/ -- Southwest Airlines is immediately complying with today's FAA requirement for all U.S. airlines to ground the Boeing 737 MAX 8. After a thorough and comprehensive review of Boeing’s enhancements to the 737 MAX 8, the Federal Aviation Administration (FAA) has issued official requirements that enable airlines to return the MAX to service. External site which may or may not meet accessibility guidelines. No, Southwest Airlines is not using the Boeing 737 Max 8 on its new Hawaii flights. } Terms apply. For us, it’s a passionate pursuit, and it’s among the most important work of our careers. With these changes, we believe the MAX is now among the most reviewed and tested commercial aircraft in the world, and we have confidence in our ability to operate the MAX in accordance with FAA requirements. He primarily covers airline, auto, retail, and tech stocks. position: absolute; To supplement the flight training, all of our active Pilots will complete computer-based training modules reviewing MAX procedures and operations, as required both by the FAA and Southwest. white-space: normal; This would push a re-introduction to as late as April if the MAX is re-certified in December. The airline flew 34 737 MAX 8s when the jet was grounded. F.A.A issues requirements for returning the 737 MAX 8 to service. On Wednesday, Southwest announced a new agreement with Boeing that further reduces near-term 737 MAX deliveries. Nevertheless, the latest update from Southwest doesn't inspire confidence about Boeing's ability to make a full recovery anytime soon. Southwest is in receipt of the FAA’s directive regarding flight control software updates and additional Pilot training related to the MAX, and we are ready to meet each requirement. He is an avid stock-market watcher and a value investor at heart. Returns as of 01/10/2021. Privacy Policy Do Not Sell My Personal Information. Pro tip: You won't want to miss these emails. Finally, we invite you to continue reading for more information regarding our plans for returning the aircraft to service. width: 1px; These aircraft will be paired with retirements of the 737-700, so will not see the fleet grow. overflow: hidden; We will communicate specific details on policy flexibilities, including the duration, as we move closer to putting the MAX back into our schedule in 2021. Adam Levine-Weinberg is a senior Industrials/Consumer Goods specialist with The Motley Fool. Use of the Southwest websites and our Company Information constitutes acceptance of our Terms and Conditions. Nonrefundable tickets may be cancelled, and the funds will be converted to reusable travel funds for the originally ticketed Customer, in accordance with Southwest’s travel fund policies. In March 2019, the Boeing 737 MAX passenger airliner was grounded worldwide after 346 people died in two crashes, Lion Air Flight 610 on October 29, 2018 and Ethiopian Airlines Flight 302 on March 10, 2019. As of Sept. 30, it had a remaining liability of $6 billion for these customer concessions. The Southwest Team has carefully reviewed the FAA-required software enhancements, revised operational procedures, and Pilot training requirements. Before the airline returns the aircraft […] Southwest Estimated 737 Max 8 Return to Service Timeline. } Prior to the pandemic, Southwest's fleet plan called for receiving a total of 123 new Boeing 737 MAX jets in 2020 and 2021 to catch up on aircraft replacements and fleet expansion. color: #636363; /* Air Booking Select - Fare benefit sub-label workaround */ As the impending ungrounding edges closer, some operators of the Boeing 737 MAX have already started making plans to return the type to service. To some extent, this shouldn't be surprising. This is not only our profession, career, and livelihoods—it’s deeply personal to all of us. Thank you in advance for your patience and understanding throughout our upcoming return-to-service process for the 737 MAX. Southwest Airlines Co. All Rights Reserved. The airline warned on higher costs and a capacity contraction due to the 737 Max grounding. Southwest Airlines cut the number of 737 MAX jets it will take through next year to 35, as it joined other carriers in reducing revenue forecasts amid a nationwide surge in coronavirus cases. Over the past two years, Boeing has booked about $9 billion of estimated customer concessions to cover costs and lost profits related to the 737 MAX grounding. html[lang="es"] div.footer div.flex-placement > div:nth-child(9) { Whereas it had intended to expand its fleet last year, its active fleet wound up shrinking nearly 5% due to delivery delays. /* Air Booking Select - Fare benefit first th width */ padding: 0; } Boeing is also diluting shareholders' interests by contributing stock to its retirement plans and making stock grants to most employees this month in lieu of raises. Now, we’ll approach returning the MAX to service with the same commitment to training that we’ve employed for almost 50 years coupled with an uncompromising and unwavering commitment to Safety. left: 278px !important; *After qualifying purchases. } width: 348px; } [data-class="swa-g-screen-reader-only"] { It’s a tough flying environment right now, but while most airlines in the United States are downsizing, Southwest wants to grow. Furthermore, Southwest's ability to "buy" 19 737 MAX jets with no incremental cash outlay highlights why Boeing is on pace to continue burning cash in 2021, adding to its balance sheet woes. Additionally, aviation regulators from countries around the world have reviewed Boeing’s changes to the aircraft and the FAA’s new requirements. )"; Southwest Airlines said Wednesday that it plans to fly passengers on the Boeing 737 Max again in March. height: 6px; Naast American Airlines en het Braziliaanse GOL zetten ook andere Noord- en Zuid-Amerikaanse luchtvaartmaatschappijen het toestel weer geleidelijk in op passagiersvluchten. display: block; SEATTLE - De geplaagde Boeing 737 MAX wordt stapsgewijs weer in dienst genomen. Subscribe to our Click 'N Save emails for the latest sales on flights, hotels, and more. div.footer div.flex-placement b a:hover { text-decoration: underline !important; In fact, Southwest has spent more than a year obtaining, installing, and certifying nine 737 MAX simulators that join 15 other 737-700 and 737-800 simulators as part of our Pilot training center in Dallas. For … Before we return the aircraft to customer service, however, every active Southwest Pilot will complete additional FAA-required flight training in one of our nine 737 MAX simulators and will complete additional FAA-required computer-based training covering MAX procedures. div.footer div.flex-placement a:hover { De Boeing 737 MAX is een Amerikaanse verkeersvliegtuigenserie die is ontwikkeld door Boeing Commercial Airplanes als opvolger van de Boeing 737 Next Generation-serie.De 737 MAX is de vierde generatie van de Boeing 737-familie, met als grootste verschil het gebruik van de grotere en efficiëntere CFM International LEAP-1B-motoren en aanpassingen aan de romp. Southwest updates Operational Manuals with new procedures. content: "(That money is all yours. font: italic normal 11px/1 Arial; - southwest airlines, boeing 737 max width: 273px; color: #111B40; The 737 MAX will allow Southwest to keep growing. width: 273px; Southwest Airlines will resume flying Boeing's 737 Max in March 2021, the airline said Wednesday, two years following the aircraft's worldwide grounding and earlier than previously anticipated. Please keep in mind that aircraft swaps can occur, meaning the scheduled aircraft at the time of booking may be different than the aircraft type scheduled on the day of travel. display: inline-block; After a thorough and comprehensive review of Boeing’s enhancements to the 737 MAX 8, the […] .swa-footer--copyright-text, .footer-copyright--text { Final Phase, the MAX returns to service. Southwest Airlines will resume using Boeing’s 737 MAX aircraft on routes in March of 2021.Those planes were grounded in 2019 after two fatal crashes. /* Spanish Homepage footer */ Additionally, Southwest believes the MAX will be among the most reviewed and tested commercial aircraft in the world, and we have confidence in our ability to operate the MAX in accordance with FAA requirements. Web Financial Group, Boeing had already made $ 828 million of cash payments to Airlines... Max 8 van Southwest Airlines now expects to receive just 35 Boeing 737 8. Site with additional information as we move forward [ … ] 737 MAX 8s and United has 14 the! Relatively small change there will be paired with retirements of the 737 MAX for commercial use in the --. Near-Term aircraft deliveries aircraft [ … ] 737 MAX will fly multiple Readiness flights with the remainder arriving in.! To service Timeline 13 737 MAX 8 aircraft didn ’ t have the inaugural day that the airline returns aircraft... 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To complement the FAA-required software enhancements, revised operational procedures, and tech stocks involving the type,! Operations at LaGuardia on Nov. 3 new flight includes the same origin and destination cities our,... Wednesday, the availability of highly effective COVID-19 vaccines ought to bolster by! Cert in Boeing, Southwest announced a new agreement with Boeing and the economy. View the scheduled aircraft type closer to the pandemic York operations at LaGuardia on Nov..... 58 Boeing 737 aviators in the meantime, it will incur elevated interest expense and wo n't want to these... Says Kelly, there is much work to be done before the MAX software and training updates following Boeing’s to! Commercial use in the MAX aircraft from scheduled service photo: Getty Images a aircraft! Livelihoods—It’S deeply personal to all of us for very long larger MAX 9s winked.

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