Following the large order for up to 300 Boeing 737 MAX aircraft by Ryanair, we ask the following question: Would there have been a discount?
The arrangement, which is valued at over $40 billion based on the 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 2033, will also see the creation of 10,000 new jobs for the low-cost carrier, including flight crew, cabin crew, and engineering personnel.
Would There Have Been A Discount on the Ryanair MAX Order?
From the perspective of this order, questions have already been asked about whether there would have been a discount on the Ryanair MAX order.
As mentioned by Reuters, Ryanair walked away from the negotiating table last year over “delusional” aircraft prices.
In that same article, the CEO, Michael O’Leary, went as far as saying that Boeing has “a whole heap of problems” relating to a backlog of deliveries, issues with the 777X, as well as design and certification delays on the MAX 10.
With this in mind, it could very well have been the case that Boeing came back to the negotiating table with a cheaper rate for O’Leary to be attracted by.
AviationSource has approached Ryanair and Boeing for a comment on this, and at the time of publication, they have not responded to our queries.
510 Aircraft Over 10 Years if Options Exercised…
With 210 aircraft previously purchased, plus the 300, if all options are exercised, this will see 510 aircraft over 10 years delivered to Ryanair.
This would enable the Irish low-cost carrier to handle 300 million passengers per annum by March 2034, which is nearly double what they take at the moment, which is 168 million per annum in year-end March 2023.
What remains clear is that this is a significant event, with Boeing able to keep a long-standing 25-year relationship growing and Ryanair ultimately establishing its growth for the next 10 years.
On the efficiency front, this will ultimately bring fares down even more, which is something O’Leary has been definitely keen on.
It is unlikely that Ryanair and Boeing will comment on the specifics of the order, but a lot of people are definitely asking about whether a discount happened or not. And that question will ring on into the atmosphere for many months to come.