Thursday - Jul 27, 2017

Ryanair signs an $11 billion deal to buy 100 Boeing 737s


Ryanair signs an $11 billion deal to buy 100 Boeing 737s

Expansion Ryanair have confirmed their decision to acquire a minimum of 100 of Boeing’s second generation short-haul aircraft designed to seat up to 200 people, which a spokesman for Ryanair, Europe’s largest budget airline disclosed as be a “game-changer”.

The recent announcement marks the culmination of years of persuasion by Michael O’Leary, Ryanair’s CEO, to convince the US aircraft manufacturer to expand their range of best-selling single-aisle passenger jet to fit more than 189 seats.

In addition the requisition order for the first 100 of Boeing’s 737 Max stipulate that the aircraft be fitted with more fuel-efficient engines than those currently available.

According to airline industry reports, if all goes well with an initial batch of 100 737 Max’s, scheduled to be delivered between 2019 and 2023, and Ryanair will take up the option to acquire an additional 100 of passenger jets from Boeing.

The aggressive acquisition once again signals O’Leary’s determination to drive Ryanair’s expansion for, despite the budget airline recording their first drop in profits in five years, during the 2013-14 financial year. During the course of 2013, Ryanair saw a drop in customer traffic, possibly as a result of their much-criticized customer service.

With that problematic issue hopefully taking care of, and with a whole new fleet of aircraft on its way way Ryanair’s master plan to build their fleet from its current level of 308 to 520 by the year 2024 could well become a reality. If it does happen, it would see Ryanair increase their passenger handling capability from its current level of 80 million annually to 150 million within the next 10 years.

In the meantime Ryanair is awaiting delivery of the first of the 175 of Boeing’s current generation 737 short-haul aircraft which they ordered in March 2013.

The Boeing 737 short-haul aircraft is only capable of seating 189 passengers, in comparison with the 180 that the largest A320 short-haul jet by Airbus can comfortably seat.

Photo credit: Adrian Pingstone

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