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Tue, Jun 28, 2016

Southwest Delays Delivery Of Nearly 70 737 MAX Airplanes

Will Still Become Launch Customer Next Year

Southwest Airlines has delayed the delivery of 67 Boeing 737 MAX airplanes, while it has plans to accelerate the delivery of six 737-800s to 2017 rather than 2018.

The Seattle Times reports that the airline revealed the moves to investors in a presentation on Thursday.

Delivery of the 737 MAX airplanes maybe delayed by as long as six years, according to the report. That would push about $1.9 billion of Boeing's bottom line into the 2020s.

The move does not change Southwest's status as launch customer for the re-engined single-aisle workhorse airplane. It will still become the first carrier to fly a 737 MAX next year. The changes do allow Southwest to better control capital spending and it invests in technology updates over the next five years, according to the report.

(Image from file)

FMI: www.southwest.com

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