Southwest’s CEO sees the new tax bill as a potential tax windfall for the company. Pictured are Southwest jets parked at Phoenix International Airport. Ann Fisher / Flickr
Southwest Airlines Co. will consider using cash from a federal tax overhaul to buy new aircraft for expanding or refreshing its fleet.
“It puts us in a position to think about growing faster,” Chief Executive Officer Gary Kelly said before addressing an aviation-industry group in New York on Thursday. Legislation being hammered out in Congress could result in “hundreds of millions of dollars” for Southwest through a lower corporate tax rate.
“Even if we decided we don’t want to grow faster, it gives us an opportunity to begin to modernize our fleet,” he said.
The Dallas-based airline “absolutely” would consider placing an order for more of Boeing Co.’s 737 Max aircraft, he said. Kelly declined to discuss the size of a potential order. Southwest has said that it would end this year with 707 planes.
This article was written by Richard Clough and Mary Schlangenstein from Bloomberg and was legally licensed through the NewsCred publisher network. Please direct all licensing questions to email@example.com.