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Price pushes Ryanair to cancel more than 20 billion order for Boeing-Aviation

Price pushes Ryanair to cancel more than 20 billion order for Boeing-Aviation

Ryanair has ended negotiations with Boeing, which have been underway since the end of last year for the airline to acquire 75 aircraft from the American manufacturer. The two companies could not agree on a price.

Ryanair announced the end of the negotiations in a statement issued on Monday, September 6. “Both sides agreed not to waste any more time in these negotiations,” Bloomberg quoted the Irish low-cost company as saying.

At issue is Ryanair’s order for more than 100 to 200 Max 10, a Boeing jet capable of carrying more passengers, but whose sales have fallen short of expectations, which is why the low-cost airline expected to achieve a lower price through the fleet. . The cost of 200 Max 10 aircraft, without deductions, will exceed $25 billion (more than €21 billion), according to Bloomberg calculations. This new investment will be made after, at the end of last year, Ryanair announced that it had done a job Maximum of 75 737 planes ordered, a model of a smaller aircraft. This, remember, was the largest order made with the US manufacturer since the 737 Max was banned from flying about a year and a half ago. The deal, according to Ryanair at the time, brings total orders from the 737 Max to 210 aircraft, with a total value of $22 billion (more than €18.5 billion at the current price).

However, Boeing has closed important agreements with other airlines, such as United Airlines and Southwest Airlines, so, according to Bloomberg, it will not be willing to sell these new models at a lower price.

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In a statement, Ryanair CEO Michael O’Leary said the company he leads “does not share Boeing’s optimism about pricing expectations.” He says companies such as Delta Air Lines or Jet2 will place orders with rival Airbus.