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Ryanair's deal for 200 B737s "highly unlikely"

9-Dec-2009 1:21 PM

Ryanair stated negotiations with Boeing regarding an order for 200 aircraft have broken down, due to the manufacturer changing the delivery conditions for the aircraft, adding an order is now “highly unlikely to happen” (Wall Street Journal/Bloomberg, 08-Dec-2009). The two companies had “effectively almost reached agreement on price for a 200-aircraft order”, according to CEO, Micheal O’Leary. A 17-Dec-2009 deadline for the order has been set. Ryanair stated in Oct-2009 that it would slow growth if it is unable to secure a new aircraft order under the right terms. The carrier has 112 aircraft on order, all due for delivery by the end of 2012. 

Ryanair: “They want to go back and renegotiate the delivery conditions of the 200 new aircraft to make them inferior to the kind of conditions we have on the existing orders. Sadly, the deal is now highly unlikely to happen. The negotiations have now broken down. I’m shocked. Boeing could put it together again between now and next Thursday, but that’s it. It would be the first time in history that someone has reached agreement on price and then can’t get the deal done because the aircraft manufacturer wants to change the delivery conditions,” Michael O’Leary, CEO. Source: Ryanair, 08-Dec-2009.