Ryanair ready to place
more 737 Max orders: O’Leary
24 MAY, 2019 - SOURCE: FLIGHT DASHBOARD - BY: MAX
KINGSLEY-JONES - LONDON
Ryanair
chief Michael O’Leary is eager to demonstrate his confidence in Boeing and the
under-fire 737 Max by being the first to buy more once the aircraft has been
cleared to return to service.
The Irish low-cost carrier is a
major customer for the 737. According to Cirium’s Fleets Analyzer, it operates
a fleet of 431 737NGs and hold orders for 135 of the Max variant along with 75
options.
Ryanair was due to receive its
first Max in April and take five more during the 2019 summer season. But
deliveries are suspended in the wake of the fleet-wide grounding that followed
the second Max accident in March.
Boeing
Speaking to CNBC TV, O’Leary
said the loss of capacity caused by the Max delivery delay will “cost [Ryanair]
about a million passengers through the summer” and that the next batch of 50
deliveries due from the fourth quarter of 2019 are not now expected until late
this year or early next.
O’Leary says that talks with
Boeing regarding compensation to cover lost revenue will focus on discounting
rather than a cash settlement with the US manufacturer.
“We’re having a discussion with
Boeing. I think they will have to sensibly approach the losses, the million
passengers we’ve lost this year,” he says.
“I’m always much more interested
in the cost of aircraft…I don’t need cash compensation. I’d like to see some
movement from Boeing on the pricing of aircraft and on future orders.”
Ryanair is currently in talks
with Boeing about placing another 737 order, says O’Leary. “Boeing don’t have
the headspace at the moment to talk about future growth. We do.
“Ryanair will certainly be at
the front of the queue once the Max is back flying about the next order because
we want to demonstrate our confidence in Boeing.”
Meanwhile, emphasising Ryanair’s
long-standing partnership with Boeing, O’Leary told CNBC he thinks the US
manufacturer has handled the Max crisis “reasonably well. Once there was a
known problem…they identified what the issue is.”
He concedes that “there are
learnings for the FAA. Maybe the regulatory process with the manufacturer was a
bit too close. Maybe there needs to be a bit more scrutiny. Ultimately, we’ve got
great confidence in Boeing, in the FAA and in EASA.”
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