Ryanair Signs Commitment for 175 Boeing 737s
Boeing announced that Ryanair, a European low-cost carrier, has signed a commitment to order 175 Next-Generation 737-800 aircraft. The deal is valued at $15.6 billion at current list prices.
The deal keeps Ryanair as one of the few all-Boeing airlines. Yesterday, Lion Air, a low-cost carrier in Indonesia, announced an order for 234 Airbus A320 jets. Lion Air was previously an all-Boeing customer.
The deal will increase Ryanair’s fleet to 400 planes, allowing for the retirement of some older aircraft. Ryanair said its capacity would grow by 25% to 100 million passengers per year by 2018.
Ryanair said that the 737 allowed for nine more seats than the A320, an important factor for the airline.
Founded in 1984, Ryanair currently operates a fleet of over 300 Boeing 737 aircraft. Its two principal bases are Dublin and London-Stansted and it currently serves 165 destinations, primarily at secondary airports, in Europe and Africa.
The Boeing 737 is currently operated by more than 500 airlines worldwide. Over 10,000 have been ordered and 7,000 have been delivered since its launch in 1968.
The deal is good news for Boeing, which just won approval to conduct test flights for its Dreamliner aircraft, which has been grounded for the past two months after two fires on board two separate aircraft.
“We are pleased that the Next-Generation 737, as the most efficient, most reliable large single-aisle airplane flying today, has been and will continue to be the cornerstone of the Ryanair fleet,” said Ray Conner, head of Boeing’s Commercial Airplanes unit.
“This deal will help remind people that Boeing continues to build great aircraft,” said Michael O’Leary, Ryanair’s CEO.