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Author Topic: Ryanair Unlikely To Place Big Order With Boeing, CEO Says  (Read 6332 times)

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Ryanair Unlikely To Place Big Order With Boeing, CEO Says
« on: December 10, 2009, 07:57:15 AM »
BRUSSELS--Ryanair Holdings PLC's chief executive Tuesday said the Irish budget airline was unlikely to place a big order for new aircraft with Boeing Co., a move that could harm its prospects for future growth.

"Sadly, the deal is now highly unlikely to happen," Chief Executive Michael O'Leary said in an interview.

Ryanair is one of Boeing's biggest airline customers. It has been negotiating with Boeing for more than a year on the terms of an order for 200 of its 737 model.

"We effectively reached agreement on the price for 200 aircraft, but Boeing now wants to renegotiate delivery terms that would be worse than we currently have," O'Leary said, adding that talks had broken down.

Ryanair's board will meet Dec. 17. O'Leary said that if no deal had been reached by then, the deal would be off. O'Leary recently complained that Boeing's pace of negotiations was "glacial."

Boeing Tuesday couldn't comment immediately.

If the airline and Boeing can't strike a deal, O'Leary has said that Ryanair will throttle back its expansion plans. It will defer deliveries from Boeing of several 737s ordered in recent years, cancel options to buy 10 737s, and distribute cash to shareholders. Beyond 2012, the company would largely stop growing for the foreseeable future, O'Leary has said.
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Re: Ryanair Unlikely To Place Big Order With Boeing, CEO Says
« Reply #1 on: December 10, 2009, 04:41:01 PM »
Just more evidence of the sad economic we (collectively) are in.
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Re: Ryanair Unlikely To Place Big Order With Boeing, CEO Says
« Reply #2 on: December 12, 2009, 09:34:44 PM »
Yes, but I can remember some bold talk by RyanAir about operating in a recession at the start of the crisis (based on their past growth during the airline recession 10yrs ago), so I found this quite funny to hear about them cutting back.
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