Published - May 9th, 2023 @ 04:45 PM (CET)
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Ryanair signs multi-billion-dollar deal to acquire up to 300 Boeing 737 Max-10 aircraft, ending 18-month pricing dispute
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Ryanair, Ireland's leading budget airline, has reached a truce with its exclusive supplier, Boeing, signing a multi-billion-dollar deal to acquire up to 300 Boeing 737 Max-10 aircraft after an 18-month disagreement over pricing. The deal, including 150 options, is valued at over $40 billion at list prices, though Ryanair is expected to have received significant discounts. The new jets are scheduled for delivery between 2027 and 2033.
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The announcement marks the end of a prolonged dispute between the two companies, which began when Ryanair CEO Michael O'Leary criticized Boeing for high prices and delays in delivering previously ordered aircraft. O'Leary had considered exploring second-hand jets as an alternative to new Boeing planes. Boeing, which typically remains silent on customer negotiations, publicly expressed appreciation for Ryanair's business while committing to maintaining pricing discipline.

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Deal expected to boost Boeing's 737 MAX series, which faced delivery challenges due to safety crisis and COVID-19 disruptions

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Ryanair operates an exclusively Boeing 737 mainline fleet and is one of the largest customers for the American aircraft manufacturer, with over 600 planes in its fleet or on order, as per its website. Analysts anticipate that the focus will shift to whether Ryanair has secured lower per-seat costs than previous orders. Ryanair will aim to emphasize its low-cost base to maintain low fares, while Boeing will seek to avoid appearing to capitulate on aircraft prices.
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The 737 Max-10 aircraft are listed at up to $131 million each, but typical discounts often exceed 50%, with final pricing details remaining confidential. Industry insiders have noted that Ryanair has historically been able to negotiate special clauses guaranteeing the lowest prices in its region, a privilege shared only by a select few airlines, including Southwest Airlines.
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The relationship between Ryanair and Boeing had become strained following the pandemic as low-cost carriers expanded their markets. Nevertheless, Ryanair's negotiating advantage has been somewhat diminished, with other airlines like United Airlines placing substantial orders for the MAX 10.
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Despite being closely tied to Boeing's 737 fleet, Ryanair's O'Leary has expressed interest in the 230-seat MAX 10 variant yet to be certified. O'Leary has vowed not to overpay for the additional 30 seats offered by the MAX 10, indicating that he is also considering further orders for the 200-seat 737 MAX 8200.
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Ryanair, one of Boeing's largest customers, to create over 10,000 new jobs and support 80% traffic growth

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This agreement is expected to provide a much-needed boost to the largest version of Boeing's 737 MAX, which has experienced delivery challenges due to a two-year safety crisis and disruptions caused by the COVID-19 pandemic. The deal will also enable Ryanair to create over 10,000 new jobs for pilots, cabin crew, and engineers and support an 80% increase in traffic growth, from 168 million passengers at the end of March to 300 million by March 2034.

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