Ryanair has dropped an order for 200 Boeing 737s after failing to reach an agreement with the US aircraft manufacturer.
The Irish no-frills carrier said agreement had been reached on pricing for the new aircraft for delivery in 2013-16.
But Ryanair CEO Micheal O’Leary claimed Boeing was “unwilling to incorporate some other terms and conditions from our existing agreement into this new aircraft order”.
The airline said the breakdown of negotiations would not affect plans to take delivery of 112 737-800s during the next three years – 2010 (48), 2011 (37) and 2012 (27) – to sustain traffic growth over the medium term.
Plans to “significantly reduce growth and capital expenditures” will be brought forward in order to “maximise cash balances” for distribution to shareholders during the period 2012-2015.
O’Leary said: “Ryanair has made clear to Boeing that we will not order aircraft if we believe that either the pricing or the other contractual terms and conditions will be inferior to those which we currently enjoy, as this would not be a wise or sensible use of shareholders funds.
“We have no plans to reopen discussions with Boeing or any other aircraft manufacturers.”
Shareholders would be briefed in the first quarter of the new year with a revised strategy, he added.
by Phil Davies
