Re: Southwest places first 737-X order

From:         Stephen L Nicoud <stephen.nicoud@boeing.com>
Date:         20 Nov 93 00:41:14 PST
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   (None of the sources I've seen actually say that Boeing has formally
   launched the 737-X.  Normally, initial orders are conditional upon the
   board of directors giving approval to the program.  Would anyone at
   Boeing care to comment on this?  Did Boeing's board pre-approve the
   737-X based on a certain level of orders, or are the reports ignoring
   this detail, which in this case is probably just a rubber stamp?)

See the attached announcement.

   The other 737-X variants -- a smaller one, identical in size to the
   737-500, and a larger one, about two rows longer than the 737-400 --
   will be introduced whenever orders are placed for those models.

The Seattle Times referred to the 737-X as the 737-700.  It didn't
mention anything about a 737-600 or any other model number.

Anyway, here's what the announcement looked like:

 BOEING TO PROCEED WITH NEXT-GENERATION 737 FAMILY WITH SOUTHWEST AIRLINES      
 AS LAUNCH CUSTOMER                                                             
                                                                                
 Boeing and Southwest Airlines announced Wednesday that the 737-X family of     
 jetliners, the next-generation of the best-selling Boeing 737, will proceed    
 on the strength  of Southwest's commitment for 63 of the new twinjets for      
 delivery in 1997 through 2001.                                                 
                                                                                
 The Boeing Company board of directors has authorized the go-ahead for the      
 next-generation 737 program based on the Southwest order, which is subject     
 to the signing of a definitive agreement.                                      
                                                                                
 "Southwest has established itself as a leader  not only in the marketplace     
 but in selecting the right airplanes to meet the market's needs," said Dean    
 Thornton, president of Boeing Commercial Airplane Group. "They have a long     
 history of commercial success by consistently applying their low-fare, high-   
 value strategy."                                                               
                                                                                
 "Boeing has been fortunate to have Southwest as a successful business          
 partner over the past 22 years, and we look forward to introducing this        
 next-generation of 737s together," Thornton said.                              
                                                                                
 Southwest's chairman, president and CEO, Herb Kelleher, said:                  
 "We are delighted to once again be the launch customer for a Boeing            
 aircraft. The current 737 models serve our high frequency, short haul          
 operation very well. However, Boeing's business offer, combined with the       
 additional attributes and operational flexibility of the 737-X, made the       
 economics of this agreement superior."                                         
                                                                                
 The new order includes four 737-300Xs for delivery in the fall of 1997, 16     
 in each of 1998 and 1999, 15 in 2000, and 12 in 2001. Of the 63 new orders,    
 32 result from the conversion of existing 737-300 options.                     
 Southwest's existing orders for 50 Boeing 737-300s for delivery in 1994-       
 1997 are unaffected by this order.                                             
                                                                                
 Like today's 737-300/400/500 family, the next-generation 737 currently is      
 offered in three sizes. The -300X is the middle size member of the new         
 family, equivalent in capacity to the 737-300, which seats 128 passengers      
 in mixed class and 137 in SWA's single-class configuration.                    
                                                                                
 Customer orders will determine the actual model mix, timing and sequence of    
 introduction, and sizes of follow-on models, which currently are planned to    
 be larger and smaller than the initial -300X. The seating totals of the        
 three models will cover a range from 108 to 160 passengers (mixed class).      
                                                                                
 The new 737 family is a derivative of the current 737. It features a           
 modified wing with a larger span, and quieter, more powerful engines. The      
 next-generation 737s will maintain crew commonality with the                   
 current 737-300/400/500 airplanes.                                             
                                                                                
 The 737-X family will be powered by CFM56-3XS engines produced by CFMI, a      
 joint venture of General Electric of the United States and SNECMA of           
 France. The new engines will provide 10 percent more thrust than today's       
 CFM56-3 engines while meeting noise standards considerably below Stage 3       
 standards. The new engines also offer lower fuel burn, reduced emission        
 levels and lower maintenance costs.                                            
 Boeing will produce current models along with the next-generation 737          
 family as long as customer demand warrants.                                    

Stephen
--
Stephen L Nicoud  <stephen.nicoud@Boeing.Com>      bcstec!bcsaic!stephen.nicoud
I am not a Boeing spokesperson.  I reserve the right to revise, extend
and/or revoke my remarks.