DAVID FIELD / WASHINGTON
Southwest Airlines could turn to leasing companies in addition to the commitments it has with Boeing if it needs to expand capacity next year as the market recovers from the terrorist attacks.
Speaking at the Salomon Smith Barney transportation conference, in New York earlier this month, Southwest chief executive and vice-chairman James Parker told investors Southwest has "stopped deliveries from Boeing, but if the need is there, we can take up to 19 aircraft next year. We are obligated to take only eight or nine, but we can get up to 19. Plus we can go to third parties to acquire used aircraft," he said. The number of deliveries this year is still open to negotiation, Parker added.
Southwest plans "opportunistic" growth in the next year but would make only "incremental moves on frequency and capacity", said Parker. The airline "pruned and pared" schedules but did not cut capacity dramatically after 11 September, one of the few carriers to resist. Although Parker could not say if Southwest would make money in the fourth quarter "or even in the first quarter of next year, I can tell you our cost situation is very favourable-we are superbly positioned to survive and prosper," he said.
At the same conference, American Airline's Don Carty said the airline is retiring 70 aircraft and has committed to take only nine of the 45 Boeing had planned to deliver to it over the next year and a half. That is an increase from the 29 deferrals American had declared last month. It is likely to take the aircraft in 2004, Carty told the investors.
Northwest Airlines chief executive Richard Anderson said the carrier plans to take all the aircraft it had firmly committed to accept in 2002, but will review 2003, when it is to take 43, including its first Airbus A330-300s. "We will maintain discipline on capacity," Anderson told the conference, adding, "you do have to be judicious about adding back capacity."
Source: Flight International
