Ryanair to buy 200 Boeings in $18bn order

12/03/2013
RYANAIR has placed an $18bn (€14bn) order with Boeing to buy up to 200 aircraft, the Irish Independent has learned.

The mammoth order – due to be confirmed by US President Barack Obama and Taoiseach Enda Kenny at the White House next week – is the single biggest aircraft purchase ever agreed by Ryanair. It's also one of the biggest orders ever placed with Seattle-based manufacturer Boeing.

It means Ryanair has all but thrown in the towel in its seven-year battle to buy Aer Lingus, and will now focus once more on its own long-term expansions efforts. A spokesman for the airline declined to comment.

The EU blocked Ryanair's third Aer Lingus takeover attempt two weeks ago.

The order will be used to replace some existing aircraft in Ryanair's fleet, but it means the carrier will be in a position to extend its footprint to even more corners of Europe and outside the region.

Ryanair is on target to carry 80 million passengers in the year to the end of this month, and is in talks with as many as 60 airports about either adding services or flying to them for the first time.

Airports

It has even been talking to airports in Israel. Ryanair chief executive Michael O'Leary said in January that the airline was in the "fairly early stages of talks" with Boeing in an effort to reach an agreement on pricing for new jets. He's looking for orders to be delivered between 2015 and 2017.

That will help Ryanair boost its annual passenger figures to 120 million. He said Ryanair would only place an order "when the price is right". Ryanair's fleet currently comprises 305 Boeing 737-800 aircraft – the airline is the world's largest operator of that type.

The 737-800 model currently has an $89.1m (€68.5m) list price, according to the aircraft manufacturer. Last December, Ryanair received the final two aircraft of a historical order it had with Boeing.

It's not clear at this stage whether Ryanair has plumped for the 737-800 or Boeing's new 'Max' variation.

The new agreement also buries the hatchet in what was effectively a three-year stalemate between Ryanair and Boeing.

The pair fell out in 2009 as Ryanair pulled a planned order for up to 200 aircraft that had a $14bn list price (€9.8bn at the time). Mr O'Leary described the collapse of that deal as "remarkable" given that the two aviation firms had already agreed pricing for the jets. Boeing wanted to alter some conditions Ryanair enjoyed, related to warranties, for instance.

Mr O'Leary labelled Boeing executives as a "bunch of idiots" and "numpties" for letting the contract fall through. He also warned at the time that Boeing, whose corporate HQ is in Chicago, would have to come back with a "significant" discount for any subsequent deal to be done.

Ryanair has always pushed for tough terms with Boeing. In early 2002, soon after the terror attacks on New York and Washington, Ryanair placed an order for 100 aircraft with Boeing, taking advantage of depressed pricing.

Those aircraft had a $9.1bn list price at the time, but the manufacturer gave Ryanair a steep discount to secure the order.


Irish Independent

Now that the Aer Lingus saga is so to speak closed, back to the real Ryanair and its continued expansion !
New aircraft, new routes, new destinations : the future is bright and beautiful for the Ryanair fans !

Just a pity they didn't order any wide body aircraft for some transatlantic routes :-)

Mr O'Leary detailed plans to fly to up to 60 new airports for the first time.

"We are talking to 60 new airports we do not fly to , some in Israel, we are inundated with requests and airport deals at the moment. We are frankly less enthused by Russia, Ukraine and those countries at the moment," he added.

The airline has set a passenger target of 80m by the end of 2013 and hopes to boost its annual passenger figures to 120m.

http://www.herald.ie/news/ryanairs-record-14bn-bid-for-new-boeing-fleet-29125174.html

Very good news indeed. As you say above, back to the grindstone now

http://www.thestreet.com/story/11873149/1/boeing-statement-on-ryanairs-commitment-to-order-175-next-generation-737s.html

NEW YORK, March 19, 2013 /PRNewswire/ -- Boeing (NYSE: BA) is delighted that Ryanair has announced a commitment today to order 175 Next-Generation 737-800s for the airline's fleet expansion. When finalized, the agreement will be worth $15.6 billion at list prices and will be posted to the Boeing Orders & Deliveries website as a firm order.

"This agreement is an amazing testament to the value that the Next-Generation 737 brings to Ryanair," said Boeing Commercial Airplanes President & CEO Ray Conner. "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."

http://www.travelweekly.co.uk/Articles/2013/03/19/43507/ryanair-confirms-15bn-boeing-order.html

Ryanair aims to grow traffic to more than 100 million passengers a year as it confirmed a deal for 175 new Boeing aircraft worth $15.6 billion.

The airline expects to create more than 3,000 jobs as the fleet grows to more than 400 aircraft by the end of the new deliveries of next generation 737-800s in 2018.

About 75 of the new aircraft will replace some of the existing fleet of 305 B737s, while the remainder will drive growth of about 5% a year, taking Ryanair carryings to more than 100 million passengers by March 2019.

“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 said it continues to evaluate the benefits of Boeing’s 737 MAX aircraft which enters service in 2017.

Worrying times for other carriers or Healthy competition as it is known in the business... I think Boeing should Give RYR a Free 787 for their good business so we peeps can fly on one for cheap prices who knows this may make MOL venture that little bit further.

http://www.foxbusiness.com/news/2013/03/19/ryanair-resumes-growth-with-boeing-deal/


Extracts :

Dublin-based Ryanair unveiled plans to buy 175 Boeing 737-800 jets valued at $15.6 billion before discounts, allowing it to accelerate growth at a time when big rivals such as Air France-KLM SA (AFLYY, AF.FR) and Deutsche Lufthansa AG (DLAKY, LHA.XE) are wrestling to cut their own costs.

Mr. O'Leary said the new jets--due to start arriving between 2014 and 2018--could boost its fleet to around 400 planes, allowing it to fly 100 million passengers annually by 2019, from 79 million last year. Ryanair, which flies to 179 destinations, said it is in talks with more than 75 airports about new routes and expansion.

"The [Boeing] pricing is not dissimilar from our last order in 2005," said Mr. O'Leary in an interview. "This is because of our need to grow in Europe and because Boeing wanted a big order--the pricing reflects that neither of us got it all our own way."

The list price of the 737-800 has climbed by as much as 40% since 2005 to $89 million, though big customers can command discounts of as much as 50%.

Mr. O'Leary said he hoped this year reach a deal for more than 100 of Boeing's new 737 Max jets if it could secure the right terms, though he noted that the existing model is lighter and incurs lower airport charges.

Ryanair had opted to pay special dividends while pursuing a new aircraft deal, and Mr. O'Leary said Tuesday that it will hold off such payments or share buybacks for the next two years or so to fund the new jets.

The outspoken executive said there were no immediate plans to diversify from Europe with trans-Atlantic flights because of a shortage of affordable long-haul jets.
"I don't see an opportunity for a trans-Atlantic low-fares airline for the next two or three years," said Mr. O'Leary, who first outlined the plan five years ago. "But it's certainly something we keep under review."

Read more: http://www.foxbusiness.com/news/2013/03/19/ryanair-resumes-growth-with-boeing-deal/#ixzz2O14vhehk