Ryanair has announced that the ongoing Boeing 737 MAX crisis could lead to job cuts. The airline has been forced to curtail its expansion plans due to a lack of the necessary aircraft.
Ryanair was expecting to receive its first couple of Boeing 737 MAX aircraft in April last year. However, just prior to this delivery Boeing 737 MAXs across the globe were grounded following a second fatal accident of the aircraft type. As a result, Ryanair will be forced to operate for a second summer without the Boeing aircraft in its fleet.
What’s the latest?
Reuters today reported that it had seen an internal memo from Ryanair regarding the ongoing grounding of the MAX. According to the publication, the memo, circulated yesterday, states that the airline will not take any deliveries of MAX aircraft until September or October. Reuters adds that Ryanair doesn’t want to take delivery of aircraft between June and August.
This is the busiest time of the year for the Irish low-cost cattier. As a result, the carrier needs all hands on deck to ensure that aircraft are out flying. When new aircraft are delivered to airlines, they typically undergo entry to service checks. These checks can take longer when the first aircraft of a type is delivered, as would be the case with the first 737 MAX delivery.
So what’s this about job cuts?
Reuters went on to add that the memo went on to warn about “possible base closures and job cuts”. This won’t be the first time that Ryanair has been forced to close bases over its lack of aircraft. In October, we reported that the Irish carrier would be closing five Spanish bases including at Gran Canaria. Then, in December Ryanair added that it would additionally be closing its bases in Nuremberg and Stockholm’s Skavsta Airport.
Ryanair has had to cut back in its expansion plans without the Boeing 737 MAX aircraft. The airline had expected to receive as many as 60 737 MAX aircraft by June this year. However, it now looks as though the carrier will have none at all.
Ryanair was primarily looking to its 737 MAX order to expand its fleet as opposed to replacing older aircraft. This has left the carrier with a specific problem. Whereas other airlines have been able to keep older aircraft and lease a few aircraft in the meantime, Ryanair doesn’t have these options.
In effect, the longer the Boeing 737 MAX crisis drags on, the worse the problem gets for Ryanair. The airline will be down 60 new aircraft by June this year. This means that the fleet will be almost 12% compared to what the airline is expecting.
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