OPNLguy
Topic Author
Posts: 11191
Joined: Tue Jun 15, 1999 11:29 am

SWA 737 Orders/Options

Sat Apr 16, 2005 7:48 am

It seems like questions about SWA's orders, options, and other aircraft info are always smoing up, so he's an excerpt from the 10-Q filing issued today...

-----------------------------------------------------------

Contractual Obligations and Contingent Liabilities and Commitments

Southwest has contractual obligations and commitments primarily for future purchases of aircraft, payment of debt, and lease arrangements. Following the receipt of 12 new 737-700 aircraft from Boeing in the first three months of 2005, the Company has 22 737-700 aircraft deliveries for the remainder of 2005. Following the first quarter exercise of options to purchase an additional seven aircraft in 2006, the Company has firm commitments for the purchase of 33 new 737-700 aircraft to be delivered in 2006, along with an option for one additional aircraft. The following table details the Company's current (as of March 31, 2005) firm orders, options, and purchase rights through 2012.

...................Current Schedule
...................Firm.....Options*
2005**..........34.............-
2006.............33............1
2007.............25..........29
2008...............6..........45
2009-2012.......-........177
Total.............98........252

* Includes purchase rights
** Includes 12 aircraft delivered through March 31, 2005


The following table details information on the 424 aircraft in the Company's fleet as of March 31, 2005:

TYPE....SEATS....AVG.AGE....TTL....OWNED...LEASED
-300........137..........13.9.........194........110............84
-500........122..........13.9...........25..........16.............9
-700........137............3.4.........205........203.............2

TOTALS...................8.8.........424........297............95


The Company has the option, which must be exercised two years prior to the contractual delivery date, to substitute -600s or -800s for the -700s.
ALL views, opinions expressed are mine ONLY and are NOT representative of those shared by Southwest Airlines Co.
 
FlagshipAZ
Posts: 3192
Joined: Sun Jan 28, 2001 12:40 am

RE: SWA 737 Orders/Options

Sat Apr 16, 2005 12:32 pm

OPNLguy, you may want to do the math again under the "owned" column.
Still any way you look at it, it's alot of 737s up there for 1 airline.  Wink Regards.
"Beer is living proof that God loves us and wants us to be happy." --Ben Franklin
 
WestWing
Posts: 1133
Joined: Thu Feb 03, 2005 2:01 am

RE: SWA 737 Orders/Options

Sat Apr 16, 2005 1:17 pm

Quoting FlagshipAZ (Reply 1):
OPNLguy, you may want to do the math again..

Wow, sharp eyes FlagshipAZ, but it wasn't OPNLguy's math - he just quoted verbatim from the 10-Q. Blame the CFO instead.  Smile Looks like someone calculated 110 - 16 + 203 .
The best time to plant a tree is 40 years ago. The second best time is today.
 
OPNLguy
Topic Author
Posts: 11191
Joined: Tue Jun 15, 1999 11:29 am

RE: SWA 737 Orders/Options

Sat Apr 16, 2005 1:31 pm

Quoting WestWing (Reply 2):
but it wasn't OPNLguy's math

No, it wasn't; it came from here: (about 2/3 the way down)...

http://biz.yahoo.com/e/050415/luv10-q.html

I'll email someone about it on Monday... Thanks for the catch...
ALL views, opinions expressed are mine ONLY and are NOT representative of those shared by Southwest Airlines Co.
 
ual747-600
Posts: 597
Joined: Fri Sep 24, 1999 12:57 pm

RE: SWA 737 Orders/Options

Sat Apr 16, 2005 1:34 pm

OPNLguy,

Although I'm certainly no expert, it seems like SW's going to have to more forward options into 2006. Why are they only growing their fleet by 8% in 2005 and 2006 when they're trying to grow existing (MDW/PHL)/add new cities? Do you think they're going to convert additional options sooner?

UAL747-600
 
N77014
Posts: 812
Joined: Sat Apr 17, 2004 7:16 pm

RE: SWA 737 Orders/Options

Sat Apr 16, 2005 1:38 pm

OPNLguy,

Although I'm certainly no expert, it seems like SW's going to have to more forward options into 2006. Why are they only growing their fleet by 8% in 2005 and 2006 when they're trying to grow existing (MDW/PHL)/add new cities? Do you think they're going to convert additional options sooner?

UAL747-600





They will pull aircraft off poor performing and/or mature markets. You only have to see how markets like DAL-HOU and DAL-IAH have either shrunk or gone away.
A new life awaits you in the Off-World Colonies...
 
OPNLguy
Topic Author
Posts: 11191
Joined: Tue Jun 15, 1999 11:29 am

RE: SWA 737 Orders/Options

Sat Apr 16, 2005 1:47 pm

Quoting UAL747-600 (Reply 4):
it seems like SW's going to have to more forward options into 2006.

I would expect that you're right, and that they'll move some 2007 options to 2006, some 2008 to 2007, and so on. In the fall of 2006, the oldest -300s turn 22 years old, and at some point will start getting retired, so there will need to be replacements for them in addition to growth,,,

We'll see...
ALL views, opinions expressed are mine ONLY and are NOT representative of those shared by Southwest Airlines Co.
 
lat41
Posts: 464
Joined: Mon Jun 28, 2004 12:23 pm

RE: SWA 737 Orders/Options

Sat Apr 16, 2005 10:47 pm

Where are the 500s being used principally? I know they have some enhancements over the 300s as they were introduced a little later but other than size, I'm not sure how they differ.
 
OPNLguy
Topic Author
Posts: 11191
Joined: Tue Jun 15, 1999 11:29 am

RE: SWA 737 Orders/Options

Sat Apr 16, 2005 10:51 pm

Quoting Lat41 (Reply 7):
Where are the 500s being used principally?

Mainly Texas and California, but one could turn up almost anywhere in the system. I had one on a BWI-LAX flight (not full) the other day...
ALL views, opinions expressed are mine ONLY and are NOT representative of those shared by Southwest Airlines Co.
 
SWA TPA
Posts: 1454
Joined: Wed Aug 29, 2001 6:10 am

RE: SWA 737 Orders/Options

Sun Apr 17, 2005 12:02 am

Those -500's have been popping up in TPA a bit more lately too!

SWA TPA
I believe I can fly.....
 
FlagshipAZ
Posts: 3192
Joined: Sun Jan 28, 2001 12:40 am

RE: SWA 737 Orders/Options

Sun Apr 17, 2005 12:05 am

Any chance that WN would pick up some ex-UA 735s once they're available?
I know it's a rather silly question, but WN does go shopping for some used aircraft if capacity is needed fast & if the price is right. Regards.
"Beer is living proof that God loves us and wants us to be happy." --Ben Franklin
 
OPNLguy
Topic Author
Posts: 11191
Joined: Tue Jun 15, 1999 11:29 am

RE: SWA 737 Orders/Options

Sun Apr 17, 2005 12:21 am

Quoting FlagshipAZ (Reply 10):
Any chance that WN would pick up some ex-UA 735s once they're available?
I know it's a rather silly question, but WN does go shopping for some used aircraft if capacity is needed fast & if the price is right.

Not a silly question at all...

There was some discussion about possibly acquiring used -300s/-500s, but that most recent thing that I've heard is that they've ruled that out, and will just stick with -700s. Reality will be anyone's guess....  Wink
ALL views, opinions expressed are mine ONLY and are NOT representative of those shared by Southwest Airlines Co.
 
ntspelich
Posts: 740
Joined: Tue Aug 05, 2003 2:35 am

RE: SWA 737 Orders/Options

Sun Apr 17, 2005 12:43 am

Quoting OPNLguy (Reply 11):
Not a silly question at all...

There was some discussion about possibly acquiring used -300s/-500s, but that most recent thing that I've heard is that they've ruled that out, and will just stick with -700s. Reality will be anyone's guess....

Would that be those infamous ex-US -300s that we all were hearing so much about up at BWI a few months back?

NTS
United 717 heavy, you're facing the wrong way. Any chance you can powerback to get off of my deice pad?
 
OPNLguy
Topic Author
Posts: 11191
Joined: Tue Jun 15, 1999 11:29 am

RE: SWA 737 Orders/Options

Sun Apr 17, 2005 12:56 am

Quoting Ntspelich (Reply 12):
Would that be those infamous ex-US -300s that we all were hearing so much about up at BWI a few months back?

As Bugs Bunny used to say, "...Eh, could beeeee......"

Also heard a variation of the rumor that said they were ex-United birds, so who knows....?
ALL views, opinions expressed are mine ONLY and are NOT representative of those shared by Southwest Airlines Co.
 
bnatraveler
Posts: 304
Joined: Tue Dec 02, 2003 10:10 am

RE: SWA 737 Orders/Options

Sun Apr 17, 2005 1:35 am

Not quite Southwest, but ATA is picking up a number of the used -300 birds from United. Word I hear is that they plan to purchase them outright with WN's investment dollars, leaving them to WN in the event that TZ goes away.
 
OPNLguy
Topic Author
Posts: 11191
Joined: Tue Jun 15, 1999 11:29 am

RE: SWA 737 Orders/Options

Sun Apr 17, 2005 1:53 am

Quoting BNAtraveler (Reply 14):
Not quite Southwest, but ATA is picking up a number of the used -300 birds from United. Word I hear is that they plan to purchase them outright with WN's investment dollars, leaving them to WN in the event that TZ goes away.

Hadn't heard that... Interesting....

It'd almost make more sense for ATA to lease some of SWA's -300s (maybe the ones that are within 2-3 years of retirement) or some -500s to keep their (ATA) costs down until they can build their finances back up. Doing so would also have schedule reliability aspects, since all SWA aircraft already have HUDs installed (as ATA does, although a slightly different model from the same manufacturer). Otherwise, that would be an additional cost were ATA to acquire used aircraft from United (or anywhere else) that didn't have HUD installed, assuming ATA wanted to retain the operational benefits of CATII/IIIA capability...
ALL views, opinions expressed are mine ONLY and are NOT representative of those shared by Southwest Airlines Co.
 
mrcomet
Posts: 575
Joined: Mon Mar 28, 2005 5:53 am

RE: SWA 737 Orders/Options

Sun Apr 17, 2005 2:32 am

One thing for sure, the 737s will need to start being replaced when either Airbus or Boeing decides to start the war of the low end airplanes. So far, they seem content to let the A320 and 737NG duke it out as long as the orders fall to both of them. However, Boeing has been talking about applying 787 technology to 737s and then all hell will break loose (you thought the A350/787 fight was mean!)

I would say, WN pretty much can design their own plane. However wins their plane order will be set for a long, long time.
The dude abides
 
OPNLguy
Topic Author
Posts: 11191
Joined: Tue Jun 15, 1999 11:29 am

RE: SWA 737 Orders/Options

Sun Apr 17, 2005 3:26 am

Quoting MrComet (Reply 16):
Boeing has been talking about applying 787 technology to 737s

I don't know that the timeframe of Boeing's being able to produce and deliver such an aircraft would be prior to the point that SWA has to convert some options to keep aircraft in the delivery pipeline for expansion...

We'll see...
ALL views, opinions expressed are mine ONLY and are NOT representative of those shared by Southwest Airlines Co.
 
Chiflyer82
Posts: 27
Joined: Tue Apr 05, 2005 1:56 am

RE: SWA 737 Orders/Options

Sun Apr 17, 2005 6:22 am

Quoting BNAtraveler (Reply 14):
Not quite Southwest, but ATA is picking up a number of the used -300 birds from United. Word I hear is that they plan to purchase them outright with WN's investment dollars, leaving them to WN in the event that TZ goes away.

Some of those a/c should be in TZ colors by summer if all goes as planned and the financials are worked out. If not TZ will be in for a crunch this summer with insufficient a/c to carry out the schedule. They will all be in coach class seating with business class not coming on board until money comes along.

[Edited 2005-04-16 23:23:42]
 
swardu
Posts: 76
Joined: Fri May 07, 2004 9:06 pm

RE: SWA 737 Orders/Options

Sun Apr 17, 2005 7:03 am

Lat41....

With the retirement of the -200's, the -500 is seeing far more US territory than before. We see one per day here in RDU, I also know of between 6-10 flights -500 flights in STL. They are now pretty much scattered all over. When the -200 was in service, the -500 was relegated primarily to the SNA market until more -700's came into the fleet. Then the -500 became somewhat of a replacement for the -200, so you will see quite a few of them in DAL as well, but they are spreading their wings now and you'll find pretty much in all of our major cities that have more than 40 flights per day. I'm sure OPNLguy or SWA TPA can go to our advanced schedules and find the exact cities where the -500 is or will be....I would myself but I'll be in DAL training for Operations. Big grin
 
OPNLguy
Topic Author
Posts: 11191
Joined: Tue Jun 15, 1999 11:29 am

RE: SWA 737 Orders/Options

Sun Apr 17, 2005 7:49 am

Quoting Swardu (Reply 19):
I would myself but I'll be in DAL training for Operations.

If you're in town Monday, or Wed-Fri next week, I'm on afternoons 2-10 or so, so drop on by. If interested, email me for more...
ALL views, opinions expressed are mine ONLY and are NOT representative of those shared by Southwest Airlines Co.
 
N200WN
Posts: 695
Joined: Thu Feb 03, 2005 7:09 am

RE: SWA 737 Orders/Options

Sun Apr 17, 2005 7:54 am

Quoting Swardu (Reply 19):
I'll be in DAL training for Operations

Jeff, congratulations on getting into Ops. You'll love the new Electronic Weight and Balance (EWB). We've been training/familiarizing on it for the last two weeks and it goes operational system wide on Monday.

Now, when Boeing eventually does come up with a replacement for the 7NG it will probably be so different from the 737 series that it will be like operating two aircraft types for Southwest. A shrunken 787 would look great in WN colors.
 
N1120A
Posts: 26468
Joined: Sun Dec 14, 2003 5:40 pm

RE: SWA 737 Orders/Options

Sun Apr 17, 2005 9:12 am

Quoting OPNLguy (Reply 8):
Mainly Texas and California, but one could turn up almost anywhere in the system. I had one on a BWI-LAX flight (not full) the other day...

That had to be really light on the pax end

Quoting TPA" class=quote target=_blank>SWA TPA (Reply 9):
Those -500's have been popping up in TPA a bit more lately too!

Bet they were rotating off of DAL-W/S Destination flights
Mangeons les French fries, mais surtout pratiquons avec fierte le French kiss

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