Ryanair and Boeing are reportedly close to announcing a deal for a “three-digit” number of MAX aircraft. The low-cost carrier recently resumed talks with the planemaker following earlier disagreements over pricing.
Ryanair and Boeing deal near
As first reported by Reuters, the deal would involve around 150 Boeing 737 MAX aircraft and options for 50 more. Ryanair recently resumed discussions with Boeing over a new 737 MAX order in March after ceasing talks in late 2021 due to a pricing dispute. Two sources close to the matter have stated there could be a formal announcement as early as Tuesday – Boeing and Ryanair have declined to comment at this stage.
Ryanair CEO Michael O’Leary said in March that discussions would involve up to 200 narrowbody aircraft, with deliveries earmarked for between 2027 and 2031, before adding that there had been “some movement on pricing.” At the time, O’Leary said a firm agreement between the two companies would be unlikely for at least six months, admitting the airline would need to pay more for the 737 MAX than its previous valuations.
It seems the two long-time partners have put their grievances aside since negotiations broke down 18 months ago. During an earnings call last year, O’Leary accused Boeing’s management of “running around like headless chickens” and questioned the company’s delivery track record.
All for the MAX 10?
Ryanair’s previous negotiations with Boeing involved the 737 MAX 10, the largest MAX variant, which has yet to enter service or obtain certification. This stretched MAX will be able to seat around 230 passengers – Ryanair has already demonstrated its eagerness for more capacity with its investment in the MAX 8200, a higher-density variant of the MAX 8.
O’Leary commented back in March,
“If they give us a good discount on the extra 30 seats, we’re more likely to take MAX 10s. If they don’t give us a good discount on the extra seats, we’re more likely to go with additional MAX 200s.”
The MAX 10 is likely to receive Federal Aviation Administration (FAA) certification by the end of 2023 and has attracted large orders from the likes of United Airlines and flydubai. It will be a positive first-half year for the MAX program if Ryanair and Boeing can reach an agreement – the order would follow Air India’s commitment for 190 MAXs announced in February.
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Ryanair’s MAX fleet
Ryanair currently has over 100 Boeing 737 MAX 8 aircraft in its fleet, all of which are the ‘8-200’ variant, which can seat up to 197 passengers in an all-economy layout. According to Boeing’s most recent data, the airline has over 110 unfilled 737 MAX orders, around half of its overall order for 210 MAXs.
Do you think Ryanair will opt for the Boeing 737 MAX 10 or the MAX 8200? Which aircraft is better suited for the low-cost carrier? Let us know your thoughts in the comments.
Source: Reuters
