Boeing Finalizes $3B Ryanair Order – Investopedia



NYSE-listed Boeing Co. (BA) announced on Tuesday morning that it finalized a deal with Ireland-based Ryanair Holdings PLC (ADR) (RYAAY) for 25 additional high-capacity 737 MAX 8 airplanes. The order is estimated to be worth $3 billion at the current list price, and the first delivery is expected to be made during the spring of 2019. (See also, White House Inks $4B Deal with Boeing—Time to Buy?)

Fastest Selling Boeing Plane

The high-capacity 737 MAX 8 “Gamechanger” has emerged as the fastest-selling airplane for Boeing in its history, and it has successfully accumulated around 4,500 orders from 96 global customers. (See also, How Boeing Makes its Money?)

The latest 737 MAX 8 Gamechanger has a total of 197 seats, which is eight more than Ryanair’s current 189-seater Boeing 737-800NG. It will help Ryanair increase per-seat revenue, and is also said to be fuel efficient with 14 percent lower fuel consumption compared to current Next-Generation 737s being used by the low-cost European air carrier.

The 737 MAX fleet of planes feature the latest CFM International LEAP-1B engines, Advanced Technology winglets, Boeing Sky Interior, large flight deck displays and other features that help them operate efficiently.

Boeing and Ryanair have track record when it comes to this model. Ryanair first ordered the high-capacity 737 MAX 8 in late 2014 with a deal for 100 airplanes from Boeing. Three years later, it was supplemented with an order for 10 airplanes during the 2017 Paris Air Show. The latest order will take Ryanair’s 737 MAX order total to 135 planes. In total, Ryanair has ordered more than 650 Boeing airplanes across different genres.

The low-cost carrier is the top customer of Boeing’s 737-800 fleet of planes in the world, and is also the largest operator of Boeing planes in Europe.

“We are delighted that Ryanair is deepening their commitment to the 737 MAX as they continue to grow their fleet and expand their network,” said Ihssane Mounir, senior vice president of commercial sales & marketing at Boeing. “Ryanair’s follow-on order shows once again that the high capacity 737 MAX 8 is the perfect airplane for low cost carriers. The airplane gives our airline customers more seats to serve their core markets, maximizing revenue potential at the best cost per seat in the industry.”

“The Gamechanger has eight more seats than our current 189-seat Boeing 737-800NG and incorporates the latest technology engines and winglets which reduce fuel consumption and noise emissions, ensuring we remain Europe’s greenest, cleanest airline and lowest cost airline,” said Neil Sorahan, chief financial officer at Ryanair. (See also, Why Is Ryanair So Cheap?)



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