Ryanair ends talks with Boeing over large 737 Max order

Budget airline says it could not agree with US aerospace company on price

Last modified on Mon 6 Sep 2021 08.30 EDT

Ryanair has terminated talks on a large order of Boeing 737 Max jets after failing to reach an agreement on price with the US aerospace company.

The low-cost carrier, which is the largest European customer for the Boeing 737 Max, had been in discussions about ordering the 230-seat Max10 aircraft.

“Negotiations with Boeing for a Max10 order have ended without any agreement on pricing,” Ryanair said.

Last week, Michael O’Leary, the Ryanair group chief executive, put pressure on Boeing, saying a deal was unlikely to be achieved this year but the airline could order up to 250 new planes if the price was lowered.

“We are disappointed we couldn’t reach agreement with Boeing on a Max10 order,” O’Leary said on Monday. “However, Boeing have a more optimistic outlook on aircraft pricing than we do, and we have a disciplined track record of not paying high prices for aircraft.”

A deal with Ryanair, which has orders in place for 210 of the 197-seat Max 8-200 model, would have been a boost for Boeing, whose Max planes were grounded for 20 months after two fatal crashes.

Last week, O’Leary said Ryanair held the upper hand in the negotiations “because Boeing have recorded remarkably few orders for the aircraft, and they need a couple of large Max10 orders”.

He said Ryanair’s fleet would grow to more than 600 aircraft as it hoped to take advantage of a post-pandemic boom in air travel.

“We have a more than sufficient order pipeline to allow us to grow strongly over the next five years with a Boeing 737 fleet, which will rise to more than 600 aircraft and will enable Ryanair to capitalise on the extraordinary growth opportunities that are emerging all over Europe as the continent recovers from the Covid pandemic,” O’Leary said on Monday.

Boeing’s European rival Airbus sealed a deal with Jet2 for 36 A321neo aircraft worth about $4.9bn (£3.5bn) last week. Boeing had supplied the British airline in the past. Last month, US carrier Delta Air Lines ordered 30 additional A321neo aircraft, taking the total it has on order with Airbus to 155.

“We do not share Boeing’s optimistic pricing outlook, although this may explain why in recent weeks other large Boeing customers such as Delta and Jet2 have been placing orders with Airbus, rather than Boeing,” O’Leary said.

Source: Read Full Article