By Rajesh Kumar Singh and Allison Lampert
CHICAGO/MONTREAL, Oct 8 (Reuters) - Southwest Airlines is leaning toward Boeing's 787 Dreamliner as its first widebody jet as it weighs launching long-haul international flights, according to three people familiar with the carrier's fleet planning.
The people, who declined to be named because the deliberations are private, cautioned that no final aircraft decision has been made. The choice would ultimately rest with Southwest's board, which last year formed
a Fleet Oversight Committee to help oversee the company's aircraft fleet acquisition strategy.
Southwest has not publicly named an aircraft for long-haul flying. In September, Chief Financial Officer Tom Doxey said long-haul international service was among a range of options under consideration but that no decision had been made.
One of the people said Southwest has contemplated a fleet of dozens of 787s.
Southwest has also examined how quickly it could obtain aircraft, including through lessors or the secondary market, according to two of the people. Reuters could not determine which 787 variant it is considering or whether any leasing arrangements have been made.
Southwest did not directly address questions about the 787, saying in a statement, "We do not have any news forthcoming related to our fleet plans." Boeing referred questions about the fleet plans to the carrier. Airbus said it does not comment on discussions with airlines.
The deliberations would take Southwest's overhaul into a new phase. The airline has added assigned seating and extra-legroom seats and announced airport lounges and plans for a premium credit card as it seeks to attract higher-spending travelers.
A widebody fleet would take Southwest into long-haul international flying and more direct competition with larger US rivals. Southwest has publicly discussed long-haul expansion as part of a broader effort to give customers fewer reasons to book with competitors while strengthening its Rapid Rewards loyalty program and co-branded credit-card business.
CEO Bob Jordan has said Southwest does not need a long-haul network comparable with those of Delta Air Lines, United Airlines or American Airlines. In May, he said 8 to 12 long-haul destinations could cover much of where Southwest customers want to travel.
BOEING VERSUS AIRBUS
Southwest currently operates an all-Boeing 737 fleet, but Airbus has been aggressively courting the airline as it evaluates future fleet needs, according to people familiar with the discussions. They said the A321XLR and A330neo could serve its long-haul needs, while the smaller A220 has been pitched for other parts of its network.
Choosing Airbus would require Southwest to diversify its fleet. Those people said the 787 has appeared to hold the stronger position in the discussions.
Southwest's pilot union has publicly indicated that more than one path is being examined. Jody Reven, president of the Southwest Airlines Pilots Association, said in a recent union podcast that the company had discussed both a "large aircraft" and a "narrow-body long-haul aircraft" as part of its future plans.
AVAILABILITY COULD SHAPE TIMING
The long-haul plan has been discussed on a roughly three-year timetable, one of the people said. But aircraft availability could shape the timing.
Boeing has said the 787 is sold out through the end of the decade.
One of the people said Southwest has explored obtaining some Dreamliners through lessors, potentially allowing an earlier launch. Another said aircraft from the secondary market had been considered for the initial fleet.
Adding a 787 widebody would be a bigger undertaking than expanding Southwest's current 737 operation. Southwest has said adding a new aircraft type could require new maintenance and training programs, regulatory approvals and union negotiations over pay and work rules.
(Reporting by Rajesh Kumar Singh in Chicago and Allison Lampert in Montreal; Additional reporting by Tim Hepher in Paris; Editing by Joe Brock and Matthew Lewis)
