The Strategist

Ryanair leaves negotiations to buy large batch of Boeing 737 MAX

09/07/2021 - 09:28

Ryanair, which is Boeing's largest customer outside the U.S., announced its withdrawal from negotiations to buy a new large batch of Boeing 737 MAX. The Irish company, Europe's largest low-cost carrier, was not satisfied with the price of these planes, and Boeing refused to lower the price, according to Reuters.

Earlier, Ryanair had ordered Boeing 210 MAX 8200 (197-seat). The first 13 planes of this batch were received by the carrier in the summer, another 55 will be delivered next winter. Ten months ago Ryanair management began negotiations with Boeing about purchasing a batch of more spacious 737 MAX 10 (230-seat) aircraft. The cost of such party according to the catalog is $33 billion. The head of Ryanair Michael O`Leary was ready to buy 250 such planes, if the price could be agreed upon with a discount. However, the parties could not reach an agreement, and Mr. O`Leary announced the end of negotiations. 

"Ryanair is our longtime partner," Boeing said, "but at the same time we are disciplined and make decisions that are appropriate for our customers and our company. Ryanair said it was "disappointed" by this. "Boeing has a more optimistic view of the cost of these planes than we do, and we adhere to the rule of not paying high prices for planes," Ryanair stressed.

Experts believe that Ryanair expects to obtain concessions from Boeing by this demonstrative way, which would be very profitable, given that his planes MAX series had to stay idle for 20 months after two tragic crashes. Since the beginning of the year Boeing has already received orders for 630 planes, including 150 MAX series planes.