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PacoMartin wrote:My question is hypothetical. Over the next 15-20 years Southwest will probably phase out the smaller jets as they all get fairly old. Will
(1) Southwest buy a new class of smaller jets like B737-7 MAX, or A220-300s
(2) Force these small airports into more limited routes with larger jets
(3) Abandon some tiny airports or all routes suitable to smaller jets as incosistent with their business plan
PatrickZ80 wrote:The difference between a 737-700 and 800 is negligible, it's only a few seats. Any airport that can handle a 700 can also handle and 800, there's no difference.
So I'm guessing it's option 2, however the route limitation will hardly be notable. They'll just sell more seats. The benefit of a larger aircraft is that the operational costs per seat are lower, so they can sell those seats cheaper in order to stimulate demand. Meanwhile they'd still keep more or less the same revenue.
Maybe on some routes they'd cut the frequency a little if they got the feeling they can't stimulate the market enough by lower fares.
PacoMartin wrote:(1) Southwest buy a new class of smaller jets like B737-7 MAX, or A220-300s
MIflyer12 wrote:PacoMartin wrote:(1) Southwest buy a new class of smaller jets like B737-7 MAX, or A220-300s
Given that WN has at least 50 737-700s that are less than 12 years old there is no urgency. -700s make up nearly 2/3 of WN's frames by count. Lack of -700s or MAX 7s isn't going to cause WN to drop PWM service.
People have tried lots of ways to rationalize that WN needs a new type. Some day they'll get one. If they were interested in serving smaller markets they could have kept the 717s instead of paying $160 million to refurb/reconfigure them for Delta.
The more interesting question is what routes/airports will be dropped as CR2/E145/CR7s age out?
PatrickZ80 wrote:The difference between a 737-700 and 800 is negligible, it's only a few seats. Any airport that can handle a 700 can also handle and 800, there's no difference.
PatrickZ80 wrote:So I'm guessing it's option 2, however the route limitation will hardly be notable. They'll just sell more seats. The benefit of a larger aircraft is that the operational costs per seat are lower, so they can sell those seats cheaper in order to stimulate demand. Meanwhile they'd still keep more or less the same revenue.
mjgbtv wrote:Population and passenger counts tend to grow over time. Some of those airports should grow their traffic to fill the larger aircraft.
PacoMartin wrote:mjgbtv wrote:Population and passenger counts tend to grow over time. Some of those airports should grow their traffic to fill the larger aircraft.
That is a resonable guess and was option #3. Up until 1967 you needed to fly in a 4 engine jet to have more than 131 seats and the biggest Boeing 4 engine jet was limited to 189 seats. As air travel grows, the popularity grows for larger jets.
So if Southwest has over 500 jets with 143 seats, and average age is 15.6 years, over the next 15 years it is possible that even the smallest Southwest airport can be served economically with 175 seat aircraft.
503 Boeing 737-700: 15.6 Years average Southwest
But what about United's fleet of "smaller" jets (362 jets). They are considerably older than Southwest
82 Airbus A319-100: 18.2 Years (youngest of which is 12 years old)
99 Airbus A320-200: 21.5 Years (only two are less than 17 years old)
41 Boeing 737-700: 20.8 Years (youngest is 15.7 years old)
141 Boeing 737-800: 16.0 Years (eleven out of 141 of these jets are less than 9 years old)
Southwest had not bought a smaller jet in 8 years, and United has only bought 11 in the last 9 years old, but United's fleet is much older. Do you have the same optimisism that United can simply upgauge to larger jets (B737-900 and MAX-9)?
American's fleet is much younger, and Delta has been buying the smaller A220-100 in an effort to reduce the age of their "small" fleet.
LAX772LR wrote:Your title is odd and confusing. Seems like you're talking about airport physicality, rather than market demand.
mjgbtv wrote:United has an extra option which is to switch routes back to regional flying.
LAX772LR wrote:Your title is odd and confusing. Seems like you're talking about airport physicality, rather than market demand.