An American low-cost carrier Southwest Airlines (LUV) expects to take the delayed delivery of the brand-new Boeing 737 MAX order, consisting of 35 jets, through the end of 2021.
Southwest Airlines (LUV) reached an agreement with Boeing to take delivery of the 35 delayed 737 MAX 8 aircraft, including 16 leased aircraft, through the end of 2021, according to the report to the Securities and Exchange Commission of U.S on December 16, 2020.
In the document, the airline outlines plans to return the Boeing 737 MAX 8 jets to service in March 2021. By that point, all its pilots would have received all necessary updates regarding 737 MAX training.
While waiting for the MAX delivery, Southwest Airlines (LUV) currently works on meeting the Federal Aviation Administration (FAA) requirements. They include modifying particular operating procedures, implementing enhanced pilot training requirements, installing the FAA-approved flight control software updates, and completing other 737 MAX maintenance tasks.
“The details of the Boeing Agreement, which included the settlement of 2020 estimated damages relating to the grounding of the Company’s 737 MAX 8 aircraft, are confidential. However, as a result of certain delivery credits provided in the Boeing Agreement, as well as progress payments made to date on undelivered aircraft, the Company currently estimates an immaterial amount of aircraft capital expenditures in the fourth quarter 2020 and full year 2021,” read in the statement.
According to the recent update of Planespotters.com data, the airline has a total of 34 Boeing 737 MAX 8 aircraft in its fleet, all of the jets parked in Victorville Southern California Logistics Airport (VCV), U.S. The airline also operates 490 Boeing 737-700 jets as well as 207 Boeing 737-800s.