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.

  • 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.

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


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