While Ryanair may have pulled back from its negotiations with Boeing for the 737 MAX 10 due to the two parties failing to see eye to eye on the price, the European low-cost giant hasn’t given up entirely on the plane just yet. Ryanair management said Tuesday it believes that the MAX 10 will ‘come their way eventually.’
In an interview with Irish media outlet Newstalk, Ryanair CEO Eddie Wilson said that an order for the MAX 10 was still on the cards – just not right now, and not at the price Boeing is asking. Mr Wilson also said that his airline was ‘in no hurry to do something’. Having recently backed out of negotiations for Boeing’s largest variant of the MAX, Ryanair is in no rush to return to the table.
“Don’t need them at the moment”
Rumour has it that the potential order could have been for as many as 200 of Boeing’s largest narrowbody. While declining to disclose the number of aircraft for which the discussions were being conducted, Mr Wilson commented that,
“We look at it very simply. What is the perceived cost of those aircraft over the next 20 years or the useful life of an aircraft – that is the sum. And if the sum is larger than what we have paid previously, we are not going to do it.”
However, the discussions have merely been temporarily tabled, as opposed to abandoned altogether. Citing the pressure on Boeing due to the many cancellations the manufacturer has suffered over the past two years, the Ryanair CEO further stated,
“We believe that it will come our way eventually. We are their largest customer in Europe, but we don’t need them at the moment, and we will just concentrate on doing our business.”
Growth potential covered by the MAX 8-200
Mr Wilson also said that Ryanair currently has load factors hovering somewhere around 80% rather than the pre-COVID 95%, and the airline foresees fully restored traffic by summer 2022. Meanwhile, with an order of 210 of its special MAX 8-200s, the carrier is indeed not dependent on a MAX 10 order to grow and profit from opportunities arising across Europe post-crisis.
Is Boeing under enough pressure?
By now, Boeing has nearly cleared its stockpile of 200 white tail aircraft, and the recertification of the 737 MAX may have somewhat boosted morale in Chicago. Meanwhile, as if the pandemic wasn’t enough, problems have also piled up for the 787 Dreamliner, causing production delays and halted deliveries. If this will be enough to swing Boeing towards meeting the demand of a hard-bargaining Ryanair, remains to be seen.
What do you think? Will Boeing come around and lower its asking price for the MAX 10 in future negotiations with Ryanair? Leave a comment below and let us know.