Ryanair terminates Boeing negotiations
Ryanair confirmed (18-Dec-2009) it has terminated negotiations with Boeing for an order of up to 200 new B737-800 aircraft for delivery during the period 2013-2016. Ryanair confirmed it still plans to take delivery of 112 B737-800s over the next three years - 48 in 2010, 37 in 2011 and 27 in 2012. Ryanair will now bring forward plans to significantly reduce growth and capital expenditures, to maximise cash balances for distribution to shareholders during the period 2012-2015. [more] [more - Perspective]
Ryanair CEO, Michael O'Leary, criticised Boeing for ''Mickey Mouse'' delivery conditions, describing the manufacturer as ''a bunch of idiots'' and ''numpties'' (The Post, 20-Dec-2009). Mr O'Leary added that while a price had been agreed on the aircraft, the delivery conditions were unacceptable. The carrier added that "perhaps in future, there may be other opportunities for Ryanair and Boeing to work together to our mutual benefit during the period from 2013 onwards". Boeing stated it was "disappointed" that Ryanair had not chosen to expand its fleet, adding, "we worked to find a solution that met Ryanair's needs and also made good business sense for Boeing".
Mr O'Leary added he would retire in three years, by which time Ryanair would need a different style of CEO, to reflect a change in approach and strategy at the LCC (The Post, 20-Dec-2009).
Ryanair: "We have no plans to reopen discussions with Boeing or any other aircraft manufacturers. Instead we will focus our efforts on maintaining Ryanair's strong traffic and new route growth into 2010 and we look forward to briefing shareholders in [1Q2010] with a revised strategy which will comprise much reduced capital expenditures through 2011 and 2012, thereby generating substantial surplus cash balances for distribution during the period 2012-2015," Michael O'Leary, CEO. Source: Ryanair, 18-Dec-2009.
Ryanair: ''Our share price has suffered uncertainty over the last six months [because of the negotiations]... and eventually you lose interest with a bunch of idiots who can't make a decision… There's going to be very significant dividends from 2012 onwards," Michael O'Leary, CEO. Source: The Post, 20-Dec-2009.
Ryanair: ''I think you need me for the rapid growth and for the in cost reduction initiatives. But once they're all done you then need to hand over to somebody who's a bit more respectful of politicians and bureaucrats, talks about caring about the environment and old people and f***ing jungles and fish in the sea and all that shite," Michael O'Leary, CEO. Source: The Post, 20-Dec-2009.
easyJet: "I'm delighted that Michael O'Leary now accepts what I've been saying for over a year. The era of endless fast growth and ever larger aircraft fleet is near its end. Low-cost airlines are now the mainstream way to fly in Europe. As such, it's getting difficult to find significant new passenger traffic which is profitable," Sir Stelios Haji-Ioannou, Founder. Source: The Post, 20-Dec-2009.