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Southwest CEO: 717s will be phased out because of fuel costs (updated with video)

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The 717, which has fewer seats than the 737, works well for short-haul flights, but the higher fuel prices go, the more customers get priced out of short-haul markets, he said. "Fuel affects the viability of some of the smaller markets," he said, adding that using a smaller plane simply isn't cost effective these days.

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