When Southwest Airlines decided to retrofit Blended Winglets on its 170 737-700s two years ago, managers had the advantage of a clear, concise cost-benefit tradeoff: The $750,000 drag-reducing devices would save the discount carrier an average of 92,000 gal. of jet fuel per aircraft per year and boost payload by about 6,000 lb., paying for themselves long before the aircraft would have to be retired. Making a case for makeovers for the other half of Southwest's fleet-more than 200 ...

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