Ryanair Holdings has placed a bulk aircraft order with US manufacturer Boeing for up to 300 new 737 MAX 10 aircraft. The arrangement which is valued at over $40 billion based on current list price is a firm order for 150 aircraft with options for a further 150, to be delivered between 2027 and 2033.
The historic arrangement is not only the largest bulk purchase for Ryanair, but it also represents the largest ever order for US manufactured goods placed by an Irish company.
The phased delivery schedule which has been set between 2027 and 2023 will also see the creation of 10,000 new jobs for the low-cost carrier, including flight crew, cabin crew and engineering personnel.
This will support a projected growth in traffic from 168 million at quarter end March 2023 to 300 million at quarter end March 2034. This is effectively an anticipated 80% growth increase by 2034.
The new fuel-efficient 737 MAX 10 aircraft will be configured for 228 seat capacity, which represents a 21% capacity increase over the existing 737NG fleet.
Ryanair expects that half of the deliveries of the new aircraft will be committed to replacing its older 737NG’s.
Ryanair CEO statement
“Ryanair is pleased to sign this record aircraft order for up to 300 MAX 10s with our aircraft partner Boeing. These new, fuel efficient, greener technology aircraft offer 21% more seats, burn 20% less fuel and are 50% quieter than our B737-NGs,” said Michael O’Leary, Ryanair’s Group CEO.
“We expect half of this order will replace older NGs while the remaining 150 aircraft will facilitate controlled, sustainable growth to just over 300m guests per annum by 2034.”
“This order, coupled with our remaining Gamechanger deliveries, will create 10,000 new jobs for highly paid aviation professionals over the next decade, and these jobs will be generated across all of Europe’s main economies where Ryanair is currently the No.1 or No.2 airline,” O’Leary said.
Previous negotiation history
Today’s bulk purchase announcement follows the recent resumption of negotiations between the low-cost carrier in the US manufacturer.
Ryanair’s CEO Michael O’Leary had previously frozen talks with Boeing back in 2021 for the 737 MAX-10 aircraft, with the airline expressing its concerns with the price arrangement.
Following the objection, O’Leary ventured that that this increase in price for aircraft did not suit Ryanair’s business model, and as a long time Boeing customer, this built some tension between the two companies.
The hiatus was broken earlier this month with the resumption of discussions, which is now led to the brokering of the landmark deal.
Boeing bulk orders
The finalisation of the bulk purchase for the Irish low-cost carrier represents the further windfall for the US manufacturer.
Boeing have recently finalised major bulk purchases for both its 737 and 787 family aircraft, which has seen the manufacturer establish a production ramp up plan commencing through the end of 2023.
Speaking in the finalisation of the Ryanair deal, Boeing President and CEO Dave Calhoun concluded:
“The Boeing-Ryanair partnership is one of the most productive in commercial aviation history, enabling both companies to succeed and expand affordable travel to hundreds of millions of people.”
“Nearly a quarter century after our companies signed our first direct airplane purchase, this landmark deal will further strengthen our partnership. We are committed to delivering for Ryanair and helping the airline group achieve its goals.”