Originally Posted by
TrojanCMH
I think a new order is coming, even upper management keeps saying that they are looking at the different options, I can’t really think of a situation other than a merger or buyout where they wouldn’t place a new order soon. I also wouldn’t be surprised if they already have something lined up and haven’t announced it yet. Most likely it’ll just be more Airbus. Everything is just a guess though. Ive heard rumors from 330’s to an entire new fleet of Boeing’s. I’ve heard rumors that we may be getting some of WOW planes but who knows. I’ll believe it when they tell the investors new planes are coming.
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Thank you for a thoughtful response. Sure, all of this is conjecture, but what worries me is that Airbus has a growing order book and backlog. Beyond existing orders on the book, the wait time for new A320/21 NEOs is going to be a long time unless Norwegian sells its A321 positions to Spirit or expensive leasing rates are acceptable - who knows? With the MAX issues and grounding, the concept of the risk-less “single fleet type” is being reconsidered. Sure, SWA has profited enormously from a single fleet type for many good reasons, but I bet they are rethinking some of their options from a risk perspective after the MAX grounding.
Given the MAX grounding and existing backlog and the elongated Airbus NEO backlog, the only other logical types with manageable order backlogs and potential near-term deliveries would be the CSeries/A220 and the Embraer E2 (very few total orders so far). The E2 could be delivered sooner given its light order book - and Embraer seems desperate to land a big North American order after both JB and Neeleman’s Moxy picked the CS300/A220.
With stock price directly influenced by revenue GROWTH, I would think fleet discussions must be happening.