21-Jan-2011 3:52 PM
Southwest Airlines considers Airbus switch
Analysis
Southwest Airlines CEO Gary Kelly has indicated the carrier would consider acquiring Airbus aircraft for the first time if Boeing does not develop a more fuel-efficient narrowbody jet, according to a report in the Financial Times.
Summary
- Southwest Airlines CEO Gary Kelly is open to the idea of acquiring Airbus aircraft if Boeing does not develop a more fuel-efficient narrowbody jet.
- Kelly's statement came during an investors' call, where he expressed the need for a more fuel-efficient 737.
- If Boeing does not provide a more fuel-efficient option within the next 20 years, Southwest Airlines may consider other alternatives.
- The potential acquisition of Airbus aircraft by Southwest Airlines is a significant departure from their longstanding partnership with Boeing.
- Following Kelly's statement, Boeing's shares fell by 0.9% and Airbus parent EADS dipped by 1.9%.
- This development highlights the growing importance of fuel efficiency in the aviation industry and the potential impact on aircraft manufacturers' market share.
