Southwest Airlines has acquired a startup that makes renewable ethanol, which can be used to make jet fuel.
12.03.2024 - 13:47 / skift.com / United Airlines / Southwest Airlines / Michael Oleary / Dave Calhoun / Gordon Smith
Southwest Airlines is the latest Boeing 737 Max operator to set out the scale of delivery delays. In a filing Tuesday, the carrier said there would be a reduction in the number of new planes it will receive in 2024.
Southwest has been told by the manufacturer to expect 46 Boeing 737 Max 8 deliveries this year. That is down from the previous expectation of 58 aircraft.
The delivery crunch is further compounded by delays to the 737 Max 7 program. The plane – which is the smallest of the Max family – has yet to be certified by regulators.
The airline was previously expecting 21 Max 7s to be delivered in 2024. It has now slashed that figure to zero. In the regulatory filing, the carrier said it is assuming none of the jets are placed into service this year “based on the current certification status.”
Southwest is one of the aircraft’s biggest customers. It is relying on the Max 7 to replace its aging and less fuel-efficient 737-700 jets.
In total, it means only 46 out of 79 737 Max planes are due to be delivered to Southwest this year.
Southwest is not alone in experiencing delivery delays. Earlier this month, Ryanair CEO Michael O’Leary said he was “very disappointed” that new planes wouldn’t be ready for the summer peak.
Ramping up production of its flagship single-aisle airliner isn’t easy for Boeing. Along with industry-wide supply chain problems, it also faces unique pressures.
In late January, the FAA said it would not grant any expansion of production for the 737 Max program. This followed a serious incident onboard an Alaska Airlines plane on January 5 when a door plug blew off mid-flight.
Speaking more broadly about the 737 Max, Boeing CEO Dave Calhoun said last month that the plane maker “will earn trust back through demonstrated action and a commitment to total transparency.”
In a statement, the Dallas-based airline said: “As a result of Boeing’s continued challenges, [Southwest] expects the delivery schedule to be fluid and, therefore, plans to reduce capacity and re-optimize schedules.”
The company says these capacity cuts will be “primarily for the back half of 2024”. This would likely result in “at least a one-point reduction” to the airline’s full-year capacity plans for 2024.
Southwest also trimmed its Q1 outlook for a key profitability metric. Known as ‘revenue per available seat mile’ or RASM, this is an important industry figure to help show how efficiently an airline is making money.
The company now expects this to be ‘flat to up 2%’ from a year ago, down from the 2.5% to 4.5% it previously advised. Southwest said softer demand for leisure travel was one of the reasons for the downgrade.
With fewer planes in the air and some of those that are flying being less efficient,
Southwest Airlines has acquired a startup that makes renewable ethanol, which can be used to make jet fuel.
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Boeing President and CEO Dave Calhoun revealed that he will step down from his role at the end of 2024, the aircraft manufacturer announced Monday.In addition to Calhoun's exit, Board Chair Larry Kellner said he will not stand for re-election at the upcoming annual shareholder meeting, prompting the board to elect Steve Mollenkopf to succeed Kellner as independent board chair.Mollenkopf will lead the board's process of selecting Boeing's next CEO.Meanwhile, Stan Deal, Boeing Commercial Airplanes (BCA) President and CEO, is also out amid the massive shake-up. Deal will retire from the company and be replaced by Stephanie Pope, who will lead BCA starting Monday."It has been the greatest privilege of my life to serve Boeing," Calhoun said in a letter to employees. "The eyes of the world are on us, and I know that we will come through this moment a better company. We will remain squarely focused on completing the work we have done together to return our company to stability after the extraordinary challenges of the past five years, with safety and quality at the forefront of everything that we do.""As we begin this period of transition, I want to assure you, we will remain squarely focused on completing the work we have done together to return our company to stability after the extraordinary challenges of the past five years, with safety and quality at the forefront of everything that we do," Calhoun added.The leadership changes come just one month after Boeing removed the head of its 737 Max program, Ed Clark, replacing him with former Vice President, 737 Delivery Operations, Katie Ringgold. "Our customers demand, and deserve, nothing less," Deal said at the time.It's been a tumultuous few months for Boeing in the wake of a door panel blowing out of an Alaska Airlines plane mid-flight in early January. The incident put a spotlight on the company that's revealed disturbing quality control issues that have delayed production and prompted investigations by the Federal Aviation Administration (FAA) and other agencies. Recently, airline executives have sought to meet with Boeing as some passengers are seeking out alternative aircraft and officials work to reassure the flying public that air travel is still safe.
Southwest Airlines announced the return of its Companion Pass promotion.
Boeing announced a major shake-up of its senior leadership team.
Boeing CEO Dave Calhoun will step down by the end of the year, Boeing said Monday. In addition, Stan Deal, chief of the company's commercial airplane division, will retire immediately, while board chair Larry Kellner will not run for reelection.
The chief executive of Ryanair has slammed Boeing’s approach to the 737 Max crisis.
As part of its Nonstop to Net Zero effort, Southwest Airlines is signing on to a project that's been dubbed the Hawaii Seaglider Initiative.A new mode of transportation designed to combine the speed of an aircraft with the “relatively lower cost of a boat to reduce the time and cost” of transporting travelers, seagliders are all-electric, zero-emission vessels. They operate exclusively over water and can move at up to 180 miles-per-hour, which dramatically reduces travel time. Seagliders function by floating on their hull before transitioning to “wave-tolerant underwater hydrofoils” and then take flight at ultra-low altitudes about 30- to 60-feet above the surface of the water. The vessels are being designed by Rhode Island based manufacturer REGENT.The Hawaii Seaglider Initiative (HSI) was first announced in January and includes a broad coalition of partners. Some of the high-profile corporate and community partners supporting the effort include AES Hawaiʻi, Alaska Airlines, Hawaiian Airlines, Hawaii Building & Constructions Trades Council, Hawaiʻi Lodging and Tourism Association, Japan Airlines, Maui Hotel & Lodging Association, Mokulele Airlines, Molokaʻi Chamber of Commerce, Polynesian Adventure, and United Airlines.
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