Southwest Orders 59 Planes From Boeing

Southwest Airlines Co. ordered 59 aircraft valued at $2.5 billion from Boeing Co. to expand its all-Boeing fleet into the next decade. The 737-700 model that Dallas-based Southwest requested is a new version of the Seattle aviation giant’s 737 family designed for short-haul flights. Because Boeing is locked in a bitter battle for sales with European rival Airbus Industrie, Southwest probably paid far less than list price for the planes, perhaps receiving a discount of 35%, analysts said. Airbus’ share of the global market climbed to 41% in 1997 from 32% in 1996. Boeing shares rose $1.25 to close at $45.25, and Southwest stock fell $1 to close $27. Both trade on the New York Stock Exchange.