We know that Southwest Airlines has been undergoing some significant changes, in its quest to improve profitability. The airline is doing everything from launching redeye flying, to introducing assigned and extra legroom seating. The company is also under a lot of pressure, given the activist investors who want things to change fast.
Well, there are rumors about a major announcement coming from the Dallas-based airline in the coming days. All we can do as of now is speculate, though I want to cover what’s being discussed, since it does seem likely that something will be announced.
Rumors about a major Southwest development
The always insightful @xJonNYC suggests that there might be a significant announcement coming from Southwest in the next couple of days. To briefly cover his Twitter/X postings on the topic so far, he started by asking if anyone has any intel or rumors on a Southwest and/or JetBlue announcement in the coming days.
He has heard that officials from Southwest’s pilots union have signed an NDA in recent days, including being told that a big change is coming to service procedures, which will require training.
He suggests that maybe this could include a new aircraft type at the airline, and also emphasizes that he’s not hinting that a merger is on the horizon. He also suggests the announcement could come as soon as Monday, which is a holiday in the United States, so the markets are closed (which would obviously be quite deliberate).
He also points out how there are currently zero job postings of any kind at Southwest (for both internal and external applicants), which is rather unusual. Some say that the last time there were zero job postings was when the carrier merged with AirTran, many years back.
It’s also pointed out how a Southwest flight attendant union board member attended a management meeting, and then posted a poll on Facebook, asking others which airline they think Southwest will merge with (I wouldn’t read too much into that).
So that’s kind of all we know as of now. I do believe that there will be an announcement of some sort in the coming days. However, it remains to be seen how significant it is.
What could Southwest be announcing?
Obviously all we can do as of now is speculate. Could Southwest be placing a new aircraft order? Could the airline be acquiring another airline? Could Southwest partner with another airline, in a significant way? It’s worth noting that Southwest’s union contracts have been renegotiated in recent years to give the company a bit more leverage, with everything from redeye flying, to airline partnerships.
Southwest has historically been an all-Boeing 737 operator, and it’s something the carrier has seemingly stuck to. However, there’s no denying that this is posing a major issue for the carrier’s growth and fleet renewal. The biggest issue is that the Boeing 737 MAX 7 hasn’t yet been certified, and Southwest desperately wants this lower capacity aircraft. It’s anyone’s guess if/when it will be certified.
So could Southwest finally be considering ordering a different aircraft type? Maybe the Airbus A220? Or maybe the Embraer E195-E2? The latter seems unlikely, but then again, the plane may have the fastest delivery slots available.
Alternatively, could Southwest be looking at some sort of an airline acquisition? Breeze and JetBlue have been most rumored. Breeze is privately owned and would give Southwest immediate access to A220s, so it could help Southwest’s capacity issues. Interestingly, Breeze’s president recently moved to Southwest, to take on the role of CFO. That’s likely unrelated, but worth mentioning.
JetBlue seems like a long shot to me, as the airlines have totally different business models and passenger experiences. Then again, it would give Southwest access to some lucrative markets. I’m still convinced we’re going to see some significant airline consolidation during the Trump presidency.
However, it seems unlikely that consolidation is at play here, given that some work groups have reportedly been briefed with NDAs. That wouldn’t ordinarily happen with a work group like pilots for a merger, given the risks of the information leaking. Then again, freezing all hiring and not having a single open position to fill does seem like something you’d expect if there were a merger.
Could Southwest be announcing some sort of a significant airline partnership, otherwise? Based on what’s being reported, that seems unlikely, since it wouldn’t impact service procedures at the airline.
Bottom line
While there’s nothing official yet, rumor has it that a big announcement is imminent at Southwest. We don’t know any details, though, so it’s anyone’s guess if it’s a new type of aircraft for the airline, or something totally different.
I do think Southwest management is under pressure to make major changes, and I wouldn’t be surprised to see a “radical” move, at least by Southwest’s historically conservative standards.
Anyway, we should know soon enough if something is being announced, and if so, what it is. If anyone wants to get their guess in, now is the time to do so.
What are you expecting that Southwest Airlines will announce, if anything?
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