Boeing and Ryanair have announced an agreement for the low-cost airline’s largest-ever purchase, with an order for up to 300 Boeing 737 Max 10 planes.
The initial agreement, valued at around $40bn, stated that Ryanair has ordered 150 of the jets, with options for 150 more, as it looks to expand its fleet amidst strong post-pandemic travel demands and a move towards more efficient and sustainable fuel use.
The 228-seat plane is seen as a greener technology aircraft and will burn 20% less fuel and be 50% quieter than Ryanair’s current 737-NG craft.
CEO Michael O’Leary said: “We expect half of this order will replace older NGs while the remaining 150 aircraft will facilitate controlled, sustainable growth to just over 300 million 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.”
Ryanair’s purchase is seen as a way for the company to widen the cost gap with other European airlines due to the increased number of seats in The Boeing 737 Max jets over the 737-NGs.
The beginning of 2023 has so far been a strong period for Boeing as it benefits from airline companies receiving post-pandemic demand and a desire to replace ageing fleets.
Air India recently placed a record $70bn order for almost 500 new aircraft, including 220 from Boeing, and Riyadh Air agreed to the purchase of up to 72 Dreamliner craft earlier this year.
Boeing’s president and CEO Dave Calhoun said: “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 aeroplane purchase, this landmark deal will further strengthen our partnership.”
Although the Max 10s have yet to be certified by the Federal Aviation Administration, O’Leary told a press conference that he has no fear that the aircraft will be approved by regulators.
The regulation process for this model is expected to be completed by 2024.
Additionally, Boeing is currently working on addressing supply constraints that came about after supply chain issues appeared following the Covid-19 pandemic.
Calhoun sought to ease fears about an aircraft shortage, something that was predicted by experts at the beginning of this year, by declaring that his company was evaluating its capacity every step of the way.