Southwest Airlines considers Airbus switch

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.

In an investors' call, Mr Kelly, stated: “If they [Boeing] told us we will not see a more fuel-efficient 737 for 20 years, that would probably cause us to do something.”

Boeing's shares fell 0.9% yesterday, while Airbus parent EADS dipped 1.9%.

Aerospace daily share price movements: 20-Jan-2011