Ryanair, Irish low-cost airline, looks set to order more Boeing 737 Max aircraft despite it’s uncertain situation following the crash of Lion Air and Ethiopian Airlines aircraft.
Boieng 737 Max aircraft are still grounded and it is not known when they will receive the certificate to fly again, however Ryanair looks set to place further orders of this aircraft and effectively stand by Boeing in their crisis.
Speaking to CNBC TV, Michael O’Leary (CEO of Ryanair) 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,”
“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.”
“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.”
Michael O’Leary emphasised his long-term partnership with Boeing with his latest quote, however one is left wondering whether he is using Boeing’s crisis to generate more money for his company by ordering discounted aircraft.
