The Irish company Ryanair placed a firm order for 150 medium-haul 737 Max, Boeing’s flagship aircraft, on Tuesday May 9, and put an option for 150 additional aircraft. The order is valued at 40 billion dollars (36 billion euros) at list price, but Ryanair has obtained a “competitive discount”commented his boss, Michael O’Leary, during a press conference, without further details on the amount.
“This is the largest order ever placed by an Irish company for American manufactured goods”according to Ryanair, which specifies that given its size the transaction will be subject to the approval of [ses] shareholders » September 14 at the general meeting.
“New Economies”
Ryanair estimates that the new planes, scheduled for delivery between 2027 and 2033, will enable it to create more than 10,000 jobs for pilots, cabin crew and engineers. The airline hopes to see the number of passengers carried annually increase from 168 million (at the end of March 2023) to 300 million by March 2034. “These new planes (…) offer 21% more seats, consume 20% less fuel and are 50% quieter” than older B737-NG models, Mr. O’Leary argued. He says he hopes these new devices will “new savings that will be passed on to passengers”.
The leader had publicly criticized Boeing several times in recent months, accusing the American aircraft manufacturer of late deliveries and excessively high prices. On Tuesday, he claimed to have a “high confidence” in Boeing’s ability to deliver aircraft on time. The aircraft manufacturer “did a phenomenal job of catching up” delays in its deliveries despite problems in its supply chains, he said.
Boeing in net loss
Ryanair has a close business relationship with Boeing. The company had agreed to exercise an option for 75 aircraft in December 2020, in the midst of a pandemic and when the aircraft manufacturer had only just received authorization to fly the 737 Max again after twenty months of suspension following two fatal accidents.
Boeing recently announced its intention to increase the production rate of the 737 Max to 38 per month this year and to 50 per month by 2026. The aircraft manufacturer remained in the red in the first quarter, with a loss net larger than expected, $ 425 million, the manufacturer announced at the end of April.
The airline announced in January a net profit of 211 million euros for its staggered third quarter, driven by the rebound in demand, in particular for the key holiday season. The action of Ryanair took 1.99% Tuesday at midday on the Dublin Stock Exchange while the title Boeing climbed 2.6% on Wall Street.