Ryanair pull out of 200 plane deal with Boeing

Ryanair, the World’s most hated airline, has confirmed that it has ended negotiations with Boeing over the purchase of 200 new aircraft.

It added it would not be looking to buy aircraft from another supplier.

Ryanair said that it would now bring forward plans to “significantly reduce growth and capital expenditures” between 2012 and 2015.

The airline said it would still take delivery of 112 Boeing aircraft between 2010 and 2012, as previously agreed.

“We regret that our prolonged negotiations with Boeing have failed to reach a mutually acceptable conclusion,” said Ryanair boss Michael O’Leary.

He said the two partners had agreed pricing on the 200 aircraft, but that Boeing was unwilling to include some other terms and conditions that his company enjoyed in existing contracts.

“We have no plans to reopen discussions with Boeing or any other aircraft manufacturers… perhaps in the future there may be other opportunities for Ryanair and Boeing to work together,” Mr O’Leary added.

The airline said it would generate surplus cash between 2012 and 2015 because it would no longer be buying the aircraft, and that this would be distributed to shareholders.

In order to keep costs down, all Ryanair’s aircraft are made by Boeing.

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4 thoughts on “Ryanair pull out of 200 plane deal with Boeing

  1. Three cheers for Boeing! Thank god they didnt succumb to paddy’s bully boy tactics. Lets hope Airbus follow suit when he goes crawling to them to a 45%+ discount. First of all its Manchester airport, now Boeing, so next we need the other airports (especialy Stansted), the fuel companies, passenger handling companies and all other suppliers to these pirates to stand firm and not give any further discounts so that Paddy O’leary can gets his just deserts and this sorry excuse for a company goes out of business…

  2. “Lets hope Airbus follow suit when he goes crawling to them to a 45%+ discount.”

    Well, if it’s of any reassurance, as early as February 2009, Airbus chief salesman John Leahy stated “We are not in discussions with Ryanair about aircraft. That is on the record. We don’t have plans to enter a sales campaign with Ryanair, which would be very expensive and very time-consuming.”
    http://www.ft.com/cms/s/0/4549908e-f325-11dd-abe6-0000779fd2ac.html?nclick_check=1

    When it transpired that Ryanair would not be buying Boeing, either, and speculation started that Airbus would be stepping in after all, John Leahy reaffirmed his previous statements:
    “With what I know of the pricing levels they have in mind, I think I can say this is one order that Boeing should win”
    http://www.irishtimes.com/newspaper/finance/2009/1209/1224260354736.html

    It’s kind of cool, too, that Leahy’s statements are giving O’Leary a bit of a taste of his own medicine. Which is probably not going to change anything about O’Leary’s “maverick” image in much of the Irish media (unfortunately).

  3. Recently read an article in which “Leprechaun O’leary!” commented that he had cancelled his apparent order of 300 jets because of financial reasons, he probably expects Boeing to deliver for free. Even Airbus don’t want his business, now he plans to buy some kind of Cheap Indian plane with propellers but the prototype has already crashed…!
    To add to this he suggested that Boeing were too stupid to be able to build toilet doors with money slots. Mr ‘o L either doesn’t understand that when toilets are removed and replaced with a single slot toilet, as well as extra seats to sit those extra passengers then more time will be needed to evacuate the aircraft in case of an accident. Hence – More doors, More escape chutes, New aircraft type, New aircraft type licence and testing required… Either he is too stupid himself to realise this or he just wants the press coverage.. But I even read a recent article that the press are even getting sick of him now !!

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