Negotiations on new 737 order end after Ryanair and Boeing reach pricing stalemate

After months of heavy negotiations, Irish low-cost carrier and one of Boing’s largest customers, Ryanair, has walked away from the table without placing a new order which was projected to be in the order of 250 of the 230-seat 737 MAX 10 model. The deal would have been worth approximately US$33 billion before any anticipated discount which could reduce the order value to nearer US$10 billion. The new order would have been a major boost for Boeing as it looks for large orders to instil a new-born confidence in the troubled 737 series after two fatal MAX crashes.

Currently Ryanair has 210 of the 197-seat MAX 8-200 variant on order. In announcing the collapse of negotiations, Ryanair Group Chief Executive Michael O’Leary commented: “We are disappointed we couldn’t reach agreement. However, Boeing have a more optimistic outlook on aircraft pricing than we do, and we have a disciplined track record of not paying high prices for aircraft.” However, Boeing has stood firm on the subject of discounts. “Ryanair is a long-standing partner. We value their business and are committed to supporting them,” a Boeing spokesperson said. “At the same time, we continue to be disciplined and make decisions that make sense for our customers and our company.”

Boeing is confident that the market is finally moving back in its favor, having recently won several orders, including one for 150 MAX 10s from United Airlines. However, Airbus remains a thorn in the side of Boeing and one of the principal reason’s Ryanair is not considering the A321neo is the long waiting list, though O’Leary pointedly remarked that Airbus was doing deals at the moment with other Boeing customers. Britain’s Jet2 last week closed a deal for 36 A321 neo aircraft worth about US$4.9 billion. In August Delta, which has bought aircraft from both Boeing and Airbus, placed a new order for 30 A321neos.