Airlines

Boeing Will Not Showcase 737 MAX and 777X Test Aircraft at Farnborough 2024

Boeing has announced its decision not to showcase the 777-9 and 737 MAX 10 commercial jets at the upcoming Farnborough Airshow in July, according to a statement given to The Air Current.

This decision marks a notable shift from previous airshows, where Boeing’s commercial aircraft were prominently featured. In the 2022 edition of the Farnborough Airshow, as well as last year’s Paris Airshow, Boeing’s commercial jets participated in ground displays and flight presentations.

However, recent events have led to a change in strategy. The company has faced significant public scrutiny over assembly line failures, accusations of fraud, and ongoing financial losses.

Focus on implementing quality and safety plan

In response to these challenges, Boeing has chosen to focus its efforts on implementing a comprehensive quality and safety plan. The company is reallocating engineering and manufacturing resources towards its certification and production programs. This strategic redirection aims to address and overcome the current issues affecting its operations.

Instead, it will showcase Qatar Airways B787-9 & P-8 Poseidon.

Instead of the 777-9 and 737 MAX 10, Boeing will be represented at the Farnborough Airshow by a Qatar Airways Boeing 787-9 and a Royal Air Force (RAF) P-8 Poseidon. The Farnborough International Airshow organizers have confirmed that Boeing will not have any aircraft on display at the trade event.

Qatar Airways will be the only entity featuring a Boeing aircraft on static display during the four-day event, which runs from July 22 to July 26, 2024.

Despite the absence of Boeing’s own aircraft, the company is still expected to attend the airshow. Boeing will likely be involved in several aircraft order announcements, continuing to play a significant role in the industry’s major events.

Airlines

Southwest Airlines Unveils 3-Year ‘Southwest. Even Better.’ Plan for Growth

Southwest Airlines today hosted its Investor Day briefing in Dallas, where company leaders unveiled an ambitious three-year plan designed to elevate the airline’s unique business model and deliver an even better Southwest experience.

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This comprehensive plan aims to transform the customer experience by offering more choices and enhanced comfort, all while driving revenue growth and returning to industry-leading profitability.

Transforming the Product to Meet Customer Preferences

The heart of Southwest’s transformation is a customer-centric approach guided by data-driven research. The airline is evolving to meet changing traveler needs while preserving the aspects that make it stand out among competitors.

Assigned Seating: Southwest is moving to an assigned seating model, appealing to a broader customer base. Research shows that 80% of Southwest customers and 86% of travelers with other airlines prefer assigned seating, especially on longer flights. The assigned seating model will be introduced for sale in the second half of 2025, with flights featuring this new option beginning in the first half of 2026.

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Premium Seating: Responding to traveler demand, Southwest will offer premium seating options with up to five additional inches of legroom on roughly a third of its seats, all while maintaining a competitive economy seat pitch. This move is expected to attract more customers and generate additional revenue.
Southwest Boarding with Upgrades: Even with seat assignments, Southwest’s signature boarding process will remain. Customers will still board using position numbers and signage, with the most loyal and premium passengers boarding first, ensuring a smooth and efficient process.
Bags Continue to Fly Free: Southwest’s iconic “bags fly free” policy will remain unchanged, reinforcing one of the key features that sets the airline apart from its competitors. Research confirms that any changes to this policy would reduce demand, making it a core element of the Southwest experience.

Operational Efficiencies to Fuel Growth

To support its growth over the next three years, Southwest is implementing key operational improvements:

24-Hour Operations: Starting in February 2025, Southwest will introduce redeye flights in key markets, enhancing aircraft utilization.
Turn Times Between Flights: The airline is working to reduce the time it takes to turn an aircraft, boosting productivity and making life easier for employees.

Southwest’s Financial Plan

Cost Discipline: Southwest aims to achieve an estimated $500 million in annual cost savings by 2027 through efficient hiring, optimized scheduling, supply chain opportunities, and corporate efficiency.
Strategic Fleet Management: Southwest is modernizing its fleet to achieve an average fleet age of just five years by 2031, reducing average capital expenditures on aircraft to approximately $500 million through 2027.
Prudent Capital Deployment: The airline is balancing its capital expenditures, investing in operational infrastructure, managing debt, and rewarding shareholders with dividends and share repurchases. The Board of Directors has approved a $2.5 billion share repurchase program, demonstrating confidence in Southwest’s strategic plan and revenue-generating initiatives.

Financial Targets

Southwest’s three-year financial plan aims to achieve approximately $4 billion in cumulative incremental EBIT contribution by 2027, with a targeted Return on Invested Capital (ROIC) of 15% or greater, significantly exceeding the Weighted Average Cost of Capital (WACC).