Southwest Delays Adding 'Hundreds' Of Planes | Aero-News Network
Aero-News Network
RSS icon RSS feed
podcast icon MP3 podcast
Subscribe Aero-News e-mail Newsletter Subscribe

Airborne Unlimited -- Recent Daily Episodes

Episode Date

AMA Drone Report

Airborne-Monday

Airborne-Tuesday

Airborne-Wednesday

Airborne-Thursday

Airborne-Friday

Airborne On ANN

ADR 02.13.17

Airborne 02.13.17

Airborne 02.14.17

Airborne 02.15.17

Airborne 02.16.17

Airborne 02.17.17

Airborne-HD On YouTube

ADR 02.13.17

Airborne 02.13.17

Airborne 02.14.17

Airborne 02.15.17

Airborne 02.16.17

Airborne 02.17.17

Wed, Feb 29, 2012

Southwest Delays Adding 'Hundreds' Of Planes

Rising Fuel Costs, AirTran Integration Blamed

Most commentary linking rising oil prices with suppression of an economic recovery relies on vague generalizations. But Southwest Airlines is blaming the upward march of fuel costs for a change in expansion plans which could delay the deployment of hundreds of additional planes, citing the need to reach a target of a 15 percent return on investment.

The Wall Street journal reports Southwest CEO Gary Kelly (pictured), speaking in Chicago at an employee event, said of jet fuel prices, "We prepared for $3.30, and now we're going to have to be prepared for $3.50." He adds that fuel costs, with additional uncertainty surrounding costs to merge recently-acquired AirTran, may require "schedule adjustments."

Kelly adds plans remain on track to replace some older Boeing 737 variants with the 737-800 to increase capacity, and the first of the more-efficient new 737 MAX aircraft will begin arriving in 2017, part of a recent $19 billion contract with the manufacturer.

There were bright spots in Kelly's outlook. He says the AirTran acquisition will bring Southwest customers access to the world's busiest airport, Hartsfield-Jackson International in Atlanta, and add 22 cities to the list of those served, and an improvement in annual revenue of $400-500 million.

FMI: www.southwest.com

Advertisement

More News

Airborne 02.17.17: Privatization Fight Is ON, X-37B Stays Up, TSA Arrests

Also: HeliTrak PMA, Aviation’s Next Big Fight, New KC Airport, Verifly, CFM Orders, Purdue Aviation, P&W Expansion Some of the aviation industry’s worst fears appea>[...]

Aero-News: Quote of the Day (02.19.17)

Aero-News Quote of the Day "Although our navigation algorithms can get even better, and we need to test them in many other parts of the world, this is a positive sign for Loon&rsqu>[...]

ANN's Daily Aero-Term (02.19.17): Takeoff Hold Lights (THL)

Takeoff Hold Lights (THL) The THL system is composed of in-pavement lighting in a double, longitudinal row of lights aligned either side of the runway centerline. The lights are fo>[...]

ANN's Daily Aero-Linx (02.19.17)

Aero Linx: Modification and Replacement Parts Association (MARPA) MARPA is the non-profit trade association that represents the Parts Manufacturer Approval (PMA) community. A PMA i>[...]

ANN FAQ: What Does The Airborne Partnership Initiative Mean For Your Business

Get Your Breaking News Out To The Industry A partnership between ANN and others in the aviation/aerospace industry offers more exposure, a greatly lessened strain on individual res>[...]

blog comments powered by Disqus



Advertisement

Advertisement

Podcasts

Advertisement

© 2007 - 2017 Web Development & Design by Pauli Systems, LC