Southwest Airlines Weighs 737 MAX 7 vs. A220 Order: The Best Choice May Be Neither
For the vast majority of its history, Southwest Airlines (NYSE: LUV) has exclusively operated one aircraft type: the Boeing (NYSE: BA) 737. However, the company is finally thinking about changing that. During Southwest's third-quarter earnings call, management said that it plans to place a major order for jets in the 140 to 150 seat range as soon as late 2021. While the airline is considering Boeing's 737 MAX 7, it is also looking at the rival Airbus (OTC: EADSY) A220-300.
It won't be an easy decision. Both models have major strengths and weaknesses from Southwest's perspective. Yet the best decision might be to avoid the choice altogether by keeping the carrier's 737-700s in service longer. Here's why.
Operating a single aircraft type has had major benefits for Southwest Airlines over the years. It improves pilot productivity: Every pilot can fly every plane in the fleet, and pilots never need to be retrained to fly different aircraft types. It also simplifies numerous aspects of Southwest's operations, reducing costs.
Source Fool.com
