Southwest Airlines (LUV) confirmed that the airline, together with its subsidiary, AirTran Airways, has reached a tentative agreement with Delta Air Lines, and Boeing Capital to sublease all 88 of its Boeing 717 aircraft to Delta. A final agreement is subject to Delta and Southwest reaching certain agreements with all parties related to the aircraft leases. The tentative agreement between Southwest and Delta would transition the 717s over three years starting in the second half of 2013 with completion in 2015. “This is a very complex transaction that requires time and close coordination with multiple parties. While we do have a tentative agreement with Delta, final details must be completed with all parties before a binding agreement between Delta and Southwest can be completed,” said Mike Van de Ven, Southwest Airlines’ Executive Vice President and Chief Operating Officer.
A transition of the 717s was an option that the airline acknowledged when it executed its fleet agreement with Boeing. The plan calls for the transition of approximately three 717 aircraft per month beginning in mid-2013. Southwest is not releasing any additional details about the tentative agreement at this time. The Company currently plans to keep the total fleet count relatively flat as the 717s transition to Delta.
