You're making a mistake, sellers. But to know why, you need to read the fine print of Boeing's news.
We'll get to the little details in a minute. First, let's cover the broad strokes. In a press release issued Tuesday, Boeing expressed confidence that it would end the year with "1,000 firm orders" for the 737 MAX. But with the stock down more than 3% over the past week and nearly 2.5% year-to-date, Boeing isn't getting any respect for what could be. Investors have been burned too often betting on anything related to the airline business.
And yet there's as much to like about the MAX as there is the 787 Dreamliner, which is due to join United Continental's
The fine print
Naturally, Southwest -- whose fleet consists entirely of a mix of old and new Boeing 737 models -- became the MAX's "Launch Customer" in December with 150 firm orders for the aircraft.
What drove the buy? An official statement from Southwest CEO Gary Kelly, issued at the time of the announcement, referred to the need to "become more fuel efficient and environmentally friendly," which, of course, sounds great.
But after reading the MAX specifications Boeing provided in this week's press release, I think there's another reason: range. All three initial models will fly at least 3,500 nautical miles, more than enough to cover a coast-to-coast passenger flight.
To be fair, Boeing isn't expected to deliver the MAX before 2017, and we know from its history developing the 787 that the company can't exactly be relied upon to be timely.
Nevertheless, when they do arrive, it's possible that we'll begin to see Southwest competing for long-haul routes that, right now, are the bread-and-butter of legacy carriers such as Delta and United Continental.
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