From: Stephen L Nicoud <email@example.com> Date: 08 Feb 94 02:15:58 PST
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In response to a recent query about Southwest's purchase of the Next-Generation 737, I forward this article which appeared in a Boeing Newsletter: When Southwest Airlines ordered the longer-range Next- Generation 737, speculation began that it might move away from its traditional short-haul markets when it takes first delivery in 1997. "Southwest's bread and butter markets always have been less than 450 miles, while the 737-X can fly transcontinental distances," said Julius Maldutis of Salomon Brothers of New York. "Either Southwest perceives some extraordinary opportunities in U.S. long-haul markets by the end of the decade or it sees a growing risk to its traditional short-haul strategy." Another New York analyst sees the order as a response from Chairman Herb Kelleher to the US majors who are talking of copying Southwest. He suggests Kelleher's retort could be: "With this plane, I can take on anything you do to me. If you try to trash me at Midway or in California, I can throw the plane into the Los Angeles-Chicago market, charge a $79 fare and trash you." Dave Ridley, Southwest director of sales and marketing, maintains the order is merely a continuation of the airline's "traditional conservative expansion plan of adding some 12 to 15 new planes per year." He concedes, however, that the longer range "opens up options for us should we choose to fly greater distances." (Airline Business) Stephen -- Stephen L Nicoud <stephen.nicoud@Boeing.Com> bcstec!bcsaic!stephen.nicoud This message does not represent the views of Boeing. I am not a Boeing spokesperson. I reserve the right to revise, extend and/or revoke my remarks.