Southwest might purchase Boeings unsold jets
Up to 30 airplanes orders that have been cancelled might now go to the airline.
Southwest Airlines (NYSE: LUV) is in advanced talks with Boeing (NYSE: BA) and aircraft lessors to acquire up to 30 white tail 737 MAX jets - new jets that have lost their original buyers, Bloomberg reports .
MAX's largest customer is not trying to replenish its order book in a depressed market: each of the aircraft Southwest accepts from Boeing's warehouse would, according to the report, replace a similar number of the 249 aircraft the airline has already ordered.
Boeing has also reportedly reached out to United Airlines (Nasdaq: UAL), Alaska Air (NYSE: ALK), and Delta Air Lines (NYSE: DAL) to take over some of the aircraft for which there are no buyers. Of the ~ 450 MAX jets built during the no-fly time, nearly 25% are believed to be White Tails.
Boeing's shares rose 13% in today's trading after Pfizer and BioNTech reported a 90% effective rate for their COVID-19 vaccine, raising hopes of a possible air travel rebound.