Ryanair today announced it signed an agreement with the Boeing Company to purchase 175 Boeing 737-800s valued at $15.6 Billion at current list prices growing its fleet to 400 Boeing 737-800s serving 100 million passengers per annum by the end of the delivery stream in 2018.
The agreement was signed by Boeing CEO Commercial Airplanes President CEO Ray Conner and Ryanair CEO Michael O’Leary in New York,and is subject to Ryanair shareholder approval, becoming Boeing largest deal to date this year and the largest order ever placed in the history of Ryanair. Boeing said in an statement when the agreement is finalized it will be be posted to the Boeing Orders & Deliveries website as a firm order.
The new order will create 3,000 new jobs in Ryanair for cabin crew, flight crew and engineering as Ryanair expands across Europe adding more bases. The aircraft will be delivered between 2014 and 2018 with approximately 75 of the new Boeing 737-800s used to replace some of Ryanair’s existing fleet of 305 Boeing 737-800s and the balance of 100 to drive new growth at 5% per annum up to 100 million passengers per annum by March 2019.
Ryanair will continue to evaluate the Boeing 737 MAX which enters service in 2017.
Boeing CEO Commercial Airplanes President CEO Ray Conner said “This purchase agreement is an amazing testament to the value that the Next Generation 737 brings to Ryanair. We are pleased that the Next-Generation 737, as the most efficient, most reliable large single-aisle airplane flying today, has been and will continue to be the cornerstone of the Ryanair fleet. Our partnership with this great European low-cost carrier is of the utmost importance to everyone at The Boeing Company and I could not be more proud to see it extended for years to come.”
Ryanair CEO Michael O’Leary said “Ryanair is pleased to sign this agreement with Boeing to purchase 175 new 737-800 jets, which will expand our fleet to over 400 units, creating over 3,000 new jobs for pilots, cabin crew and engineers, while allowing us to grow our low-cost airline service by about 5 percent per annum over the next several years and take our traffic to 100 million passengers by March 2019.
Ryanair is proud to buy Boeing, who have always made great aircraft and the 737-800 has been the cornerstone of Ryanair’s success due to its great engineering and phenomenal reliability. These 175 new airplanes will enable us to lower cost and airfares even further, thereby widening Ryanair’s cost and price leadership over other airlines in Europe. They provide Ryanair with the additional capacity to exploit substantial growth opportunities that currently exist as many of Europe’s flag carrier and smaller airlines are restructuring and reducing their short-haul operations.
Ryanair has the largest fleet of Boeing airplanes in Europe, and today’s order will enable Ryanair to expand and grow by offering more competition, lower prices, and better choice across the continent of Europe. Ryanair is proud to be investing in high-quality US manufacturing and jobs.”
Irish Aviation Research Institute © 19th March 2013 All Rights Reserved.
