Boeing has once again proved its mettle by securing a tremendous order for its 737 MAX jets. This comes after the renowned European airline, Ryanair, signed a deal for up to 150 Boeing 737 MAX 10 jets with an option for an additional 150. The news comes following the much-awaited recertification of the 737 MAX to return to the skies, and adds to Boeing’s ever-growing order book.
This remarkable deal also serves as a peacemaker, ending an 18-month public dispute over pricing that threatened to rupture one of the most enduring partnerships in aviation. With this agreement, Boeing’s 737 MAX, the company’s best-selling jet, receives a significant boost, particularly crucial following a challenging period marked by safety concerns and post-pandemic disruptions.
The Dynamics of the Deal
The deal signing wasn’t just a business transaction. It signified the reconciliation between the two giants following a series of disagreements over pricing and delays in the delivery of previously ordered jets. Ryanair’s CEO, Michael O’Leary, known for his robust negotiation skills and candid wit, travelled to Washington to commemorate the agreement, revealing a more subdued stance after the tough negotiations.
Understandably, the final price remains undisclosed. Still, industry insiders suggest Ryanair might have had to pay more than initially planned. Despite this, O’Leary demonstrated an unusual restraint in his comments about Boeing, keeping in mind the company’s desire to avoid any perception of over-generosity in the deal.
A Closer Look at the Numbers
The implications of this deal are far-reaching. The acquisition of new jets will facilitate Ryanair’s ambitious plans to nearly double its annual traffic to 300 million passengers by March 2034, from the 168 million flown to end-March this year. Some of this increase will inevitably come at the expense of rival carriers.
Ryanair has remained loyal to Boeing over the years, exclusively using Boeing 737s for its mainline fleet. With this recent order, Ryanair asserts itself as one of Boeing’s largest customers, boasting more than 600 planes either in its fleet or on order.
Ryanair’s decision to expand its fleet with the Boeing 737 MAX has been causing a stir in the aviation world. The airline’s latest order brings its total number of Boeing 737 MAXs to a staggering 360. A glance at Boeing’s order books shows Ryanair’s commitment to this model: 100 firm orders were placed in November 2014, followed by additions of 10 in June 2017, 25 in March 2018, and 75 in December 2020.
The Capacity Game and Crew Considerations
Ryanair’s current fleet primarily consists of the MAX 8200, a customised version of the 737 MAX 8. This aircraft has an added pair of emergency exits, allowing the number of seats to increase to 197. The new Boeing 737 MAX 10, on the other hand, presents an exciting opportunity for the airline to carry even more passengers, particularly on its most popular routes. However, for Ryanair’s CEO, Michael O’Leary, this is a delicate balance that needs to be carefully navigated.
The introduction of a larger aircraft is not without its challenges, especially when it comes to crew requirements. As mandated by the European aviation regulator, EASA, every aircraft must have one cabin crew member for every 50 seats or fraction thereof. This rule applies even if there’s only one passenger on a 230-seat aircraft; you still need five cabin crew members, as opposed to the four required for the airlines’ existing fleet. This implies a 25% increase in the cabin crew cost per flight, meaning the lower seat price O’Leary aims for will need compensations from other areas.
Fleet Expansion and Passenger Capacity
Ryanair has announced that each of its new Boeing 737 MAX 10 aircraft will contain 228 seats, a 21% increase compared to its existing Boeing 737-800s. These larger aircraft are scheduled to be delivered between 2027 and 2033. Approximately half of the order is intended to augment Ryanair’s fleet size, while the rest will replace older Boeing 737-800s.
The deal with Ryanair is a testament to Boeing’s resilience and ability to bounce back in the face of adversity. It underscores the company’s commitment to providing superior aircraft to its customers, even in the most challenging of times.
Despite Boeing’s palpable relief at securing the order, industry analysts suggest Ryanair may have lost some leverage in the negotiations. Nevertheless, the airline is set to hit new records in 2022, thanks to this sizeable order. With this deal, Ryanair has reinforced its commitment to growth, thereby setting the stage for an exciting era in European aviation.
First love never dies. I fell in love with airplanes and aviation when I was a kid. My dream was to become a pilot, but destiny led me to another path: to be an aviation digital media content creator and a small business owner. My passion for aviation inspires me to bring you quality content through my website and social accounts. Aviation is indeed in my blood and blog!
