Southwest firms up 40 737 Max order

Southwest has exercised 40 737 Max 8 options while deferring 23 737 Max 7 deliveries, a fleet adjustment driven by the tax bill passed in late December by the US Congress.

The tax legislation lowers the US corporate tax rate to 21% from 35%.

Southwest will take 15 of the 40 aircraft in 2019 and the remaining 25 will be delivered in 2020. The deferrals will push 23 737 MAX 7 firm orders, originally scheduled to be delivered from 2019 through 2021, to 2023 (12 deliveries) and 2024 (11 deliveries).

The airline’s 737 MAX 8s are fitted with 175 32″ pitch seats in a single-class layout. The options bring its total orders for MAX aircraft to 240. It placed its first 737-8 in Q4 2017.

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