Ryanair wants to renegotiate aircraft orders
07.10.09
Ryanair has very publicly asked Boeing for a discount on current and future aircraft orders, according to an analyst's account. Michael O'Leary, the airline's chief executive, speaking at an investors day last Friday, threatened to suspend and potentially cancel future 737 deliveries over price disagreements, according to Morgan Stanley's Heidi Wood. He said that the airline would switch its focus from growth to profits from 2012 unless it could agree a new aircraft deal
Ryanair's 113 firm unfilled orders account for 5 percent of Boeing's 737 backlog. Ms Wood wrote: ‘In a world where nearly all other asset classes have substantially been re-priced atop adverse airline industry conditions, one can anticipate airlines will seek a better deal not only on future orders, but possibly on firm orders already placed and in (Boeing's) backlog.'
‘The problem is, if (Boeing) flinches on pricing for Ryanair, other airlines will likely demand a similar deal.’ And the problem for Ryanair is that the alternative, Airbus, could only give Ryanair a better deal by offering ‘a ridiculously low price that would then set the bar for future A320 orders from other customers,’ she added. Airbus does not seem keen to deal with Ryanair, realising that it is being used as a stalking horse, which makes Ryanair's negotiations with Boeing still harder.
To book a stansted airport hotel or stansted airport car park at the lowest price, click on these links to two great stansted airport car parking and stansted airport hotel price comparison pages.
