🤯 Picked by our AI, this stock rallied more than Nvidia this month, yielding 94% since MarchSee the stock

Southwest CEO says airline not counting on deploying Boeing MAX 7 jets in 2023

Published 03/08/2023, 02:37 PM
Updated 03/08/2023, 03:52 PM
© Reuters. FILE PHOTO: Southwest Airlines'  Bob Jordan speaks as he is interviewed by CNBC outside the New York Stock Exchange (NYSE) in New York City, U.S., December 9, 2021. REUTERS/Brendan McDermid/File Photo
BA
-
LUV
-

By David Shepardson and Valerie Insinna

WASHINGTON (Reuters) -Southwest Airlines Chief Executive Bob Jordan said on Wednesday the carrier is not counting on deploying the Boeing (NYSE:BA) MAX 7 plane this year, which is still awaiting certification from the Federal Aviation Administration (FAA).

"We're dependent on Boeing. And there's progress. It's about six months between when it's certified and we can put it into service," Jordan told reporters at an Aero Club event in Washington. "We're not counting on it to be in service here in 2023."

Jordan said his "best guess" is it will be in service by Southwest in early 2024.

Acting FAA Administrator Billy Nolen earlier on Wednesday declined to comment on the timeline of when the agency might approve the MAX 7.

Boeing said it continues to work with the FAA to meet the requirements for MAX 7 and MAX 10 certification. "As always, we will follow global regulators' lead in the steps ahead on all certification matters," a company spokesman said.

Boeing, which has faced supply chain issues, delivered 69 planes to Southwest in 2022, down 45 jets from the 114 the company planned to deliver, Jordan said, adding Boeing has agreed to boost deliveries this year.

Boeing has unfilled orders of 388 737 MAXs for Southwest and 271 of those are for MAX 7s.

"Boeing is committed to 100 this year, so that's going to push aircraft into '24. The good thing is, it's really not having an impact on our capacity because right now the constraint is pilots," Jordan said. "The constraint is not aircraft. So until you get to early '24, it really doesn't change our capacity plan."

Jordan added that, if MAX 7 entry into service is delayed, Boeing will deliver additional MAX 8s to Southwest this year in lieu of MAX 7s. Boeing deferred to Southwest on its delivery plans for the company.

© Reuters. FILE PHOTO: Southwest Airlines'  Bob Jordan speaks as he is interviewed by CNBC outside the New York Stock Exchange (NYSE) in New York City, U.S., December 9, 2021. REUTERS/Brendan McDermid/File Photo

Congress late last year granted Boeing a waiver lifting a December deadline imposing a new safety standard for modern cockpit alerts for the MAX 7 and MAX 10, the new versions of the U.S. planemaker's best-selling 737 MAX aircraft.

Boeing Chief Executive Dave Calhoun said in January the planemaker thinks the first delivery for the 7 "will be this year and probably for the 10 the next year."

Latest comments

Loading next article…
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.