Irish airline Ryanair Holdings PLC on Tuesday ordered 300 Boeing Co 737 Max jets with a list price of more than US$40 billion, representing the US aerospace giant’s latest big contract in a fast-recovering aviation market.
The announcement, comprising 150 firm orders plus 150 options for new fuel-efficient aircraft, represents “the largest order ever placed by an Irish company for US manufactured goods,” Ryanair said in a statement, as it is eyeing big growth over the next decade.
The jets are set for delivery between 2027 and 2033. Airlines traditionally negotiate substantial discounts on list prices, especially for big orders.
Photo: Reuters
Executives did not release the financial details of the transaction, but Ryanair chief executive Michael O’Leary described the agreement as a “win-win” in an interview held jointly with Boeing chief executive Dave Calhoun.
The Dublin-based carrier said the deal would be subject to shareholder approval at its annual general meeting in September, owing to the size and scale of the transaction.
The order covers Boeing’s new 737 Max-10 aircraft, which have 228 seats, about 20 percent more than the current generation of comparable Boeing jets, O’Leary said.
At a signing event at Boeing’s Arlington, Virginia, headquarters, O’Leary said that the new aircraft “boast lower costs” that would be passed on “in the form of lower airfares, therefore driving our growth.”
Ryanair added that the new 228-seater jets, alongside a major recruitment drive, would help facilitate a surge in passenger numbers.
The carrier, which specializes in competitively priced short and medium-distance trips within Europe, is targeting an 80 percent jump in annual passenger traffic to 300 million travelers by 2034, compared with this year.
It plans to recruit more than 10,000 new cabin crew members, engineers and pilots to help meet the goal. The company hopes to garner a 30 percent share of the European market.
The deal is the latest lift for Boeing, which is emerging from a major slump due to the COVID-19 downturn and the lengthy grounding of the 737 Max after two fatal crashes.
Calhoun said he was confident that Boeing would meet the terms of the contract.
When Boeing presented its long-term outlook in November last year, the US manufacturer anticipated the logistics difficulties that have dogged the industry during the COVID-19 pandemic would improve this year and next year.
“And that is what’s been happening,” Calhoun said on Tuesday.
He also characterized the US Federal Aviation Administration’s certification process for the Max-10 as on track.
“No technical issues have arisen such that there’s a concern that we won’t be able to resolve,” Calhoun said.
“It’s documentation, documentation, documentation,” he said.
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