Ryanair is threatening to cancel and defer some of its Boeing 737s on order and curb its growth if it does not reach a fleet renewal agreement by the end of the year.
“We would prefer to grow, but if Boeing doesn’t share our vision, then I believe that Ryanair should change course before the end of this fiscal year and manage the airline over the next three years to maximise cash for distribution to shareholders,” said CEO Michael O’Leary.
“We see no point in continuing to grow rapidly in a declining yield environment, where our main aircraft partner is unwilling to play its part in our cost reduction program by passing on some of the enormous savings which Boeing has enjoyed both from suppliers and more efficient manufacturing in recent years.”
With the current downturn, Ryanair has been pushing Boeing to conclude a new order for up to 200 737s for delivery from 2013-2016. The Irish carrier also has approximately 100 737-800s on order as well as options on dozens more aircraft.