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Southwest, gaining cost efficiencies from 737 MAX order, now looks to improve labour costs

Analysis

There was a lot of talk about Christmas coming early for Southwest during yesterday's announcement about its order for 208 Boeing aircraft, but things have been going Southwest's way all year.

In addition to the 150 firm orders for the 737 MAX 7 or MAX 8, scheduled to begin delivery in 2017, Southwest increased its order for 737NGs by 58, which will be added to the 142-aircraft order book now in delivery. Consequently, the airline is set to receive 350 aircraft between 2012 and 2022. The additional order for 58 aircraft includes the firming of 25 options the airline already had with Boeing.

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