Boeing Estimates Ryanair Will Order 150 737 Max Planes

(CTN News) – In 2021, Ryanair plans to order 150 Boeing 737 Max 10 aircraft, with options for 150 more. Negotiations over the large order were derailed by a price dispute.

Having replaced aging jets and grown their fleets, this is the budget carrier’s largest order. It is also the manufacturer’s latest large deal for new planes.

In afternoon trading Tuesday, Boeing’s shares gained close to 2% following the announcement of the order, while the broader market declined.

It is planned that Ryanair will operate the Max 10 aircraft, which have not yet been certified by regulators, with a capacity of 228 seats.

It is estimated that the 150 planes in the firm order are worth more than $20 billion at list prices, but airlines receive substantial discounts for such large purchases. Due to a pricing dispute with Max, Ryanair stopped negotiations in September 2021 for a large order.

“In our view, it will never be cheap enough, and Boeing believes it will always be too cheap,” said Ryanair CEO Michael O’Leary.

These aircraft will replace Ryanair’s older 737 aircraft. Approximately 2027 to 2033 is the likely delivery window for the aircraft, according to O’Leary. The 150 additional jets it has optioned will enable it to fly more than 300 million passengers per year by 2034 and create 10,000 jobs by that time.

Boeing’s next challenge is to ramp up production of the 737 Max. As of last month, the company aims to manufacture 38 units per month, up from 31. By 2026, the company plans to open a fourth production line and increase production rates to 50 a month.

The easing of the Covid-19 pandemic has resulted in supply chain problems for both Boeing and Airbus.

According to Boeing Ryanair CEO Dave Calhoun, current demand would support rates “significantly higher” than what the company has planned, however, supply chain issues are preventing further expansion. Delays in delivery have frustrated airline executives trying to capitalize on the rebound in travel.

A month ago, Boeing delivered 64 aircraft, down from 26 last month. Among those deliveries, 18 were 737 aircraft. 737 Max deliveries were expected to be delayed due to a production defect on some models.

Boeing will evaluate whether or not a fifth production line is required at every stage, according to Calhoun.

We believe that if the supply constraints that we face today were to ease somewhat, that day could arrive, and nothing would make us happier,” Calhoun commented.

It is expected that the 737 Max 10 will be certified in 2024, according to him.

In his words, “We will not be able to give you a date, as that is the FAA’s responsibility, not ours.”.

He said that he has “no fear” that regulators will approve the high-density aircraft configuration.

In order to attract travelers, the budget airline offers low fares, but then charges for everything from seat assignments to checked bags. According to O’Leary, there is no truth in the rumor that the carrier will charge passengers to use the onboard bathrooms.

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