Southwest Orders 150 Boeing 737s (LUV, BA)

Southwest Airlines Co. (NYSE: LUV) has placed the first firm order for 150 new airplanes from Boeing Co. (NYSE: BA). The airlines has ordered 150 of Boeing’s latest model of the venerable 737, the 737 MAX, which is scheduled for delivery in 2017. Southwest also ordered a total of 58 737-700s and 737-800s.

The 737 MAX order is worth $19 billion and is the largest single order Boeing has ever received, both in terms of dollar value and number of planes ordered. Southwest flies only Boeing 737s and is the aircraft maker’s single largest customer. Southwest has firm orders on Boeing for a total of 350 airplanes to be delivered by 2022. The airlines also has options on an additional 242 planes.

The 737 MAX will be the most fuel-efficient of the 737 family. Boeing decide to replace the engines on existing 737 rather than redesign a new short- to mid-range plane from the ground up. Its main competitor, Airbus, is also putting a new, more fuel-efficient engine on its A320 model and designating the new plane the A320neo.

Boeing claims 948 orders and commitments for the 737 MAX and expects the number to rise as high as 1,500 by the end of next year.