Ryanair breaks offt alks to buy 200 Boeing aircraft

 

LONDON: Budget carrier Ryanair Holdings plc announced yesterday it has broken off negotiations with Boeing Co to buy 200 more 737-800 short-haul aircraft after being unable to extract concessions from the manufacturer.

Ryanair chief executive Michael O'Leary said Ryanair had reached a pricing agreement for the aircraft - to be delivered from 2013 to 2016 - but Boeing was "unwilling to incorporate some other terms and conditions from our existing agreement into this new aircraft order."

O'Leary declined to specify what the points of disagreement were. He said Ryanair was willing to reopen negotiations next year, but stressed that Ryanair - Europe's fastest-growing and most profitable airline - would do a deal only if Boeing conceded to its demands.

"Instead we will focus our efforts on maintaining Ryanair's strong traffic and new route growth into 2010," O'Leary said. "We look forward to briefing shareholders in the first quarter of the New Year with a revised strategy which will comprise much reduced capital expenditures through 2011 and 2012."

Ryanair said it still plans to take delivery of 112 737-800s over the next three years.

Ryanair is one of Boeing's biggest customers and typically negotiates years in advance for large blocs of aircraft - purchased at heavily discounted bulk prices.

The Chicago-based aircraft manufacturer said it was disappointed that Ryanair decided not to expand its fleet. It also kept the door open for resumed negotiations in 2010. - AP