Posted on 09/06/2021 12:12:05 PM PDT by BenLurkin
BLIN – Boeing faces a standoff with one of its biggest customers after Ireland’s Ryanair said it had ended talks over a purchase of 737 MAX 10 jets worth tens of billions of dollars due to differences over price.
The rare decision to go public over big-ticket airplane negotiations comes after months of wrangling that had already delayed a deal for the largest version of the 737 MAX when Ryanair re-ordered a smaller model in December.
A large new Ryanair order would provide a boost to the U.S. plane maker as it rebuilds confidence in the MAX, grounded for 20 months until November after two fatal crashes. It would also speed a tentative industry recovery from the COVID-19 pandemic.
Europe’s largest budget carrier is already the region’s largest MAX customer with 210 of the 197-seat MAX 8-200 on order. It has dangled a fresh order potentially worth $33 billion at list prices for up to 250 of the 230-seat MAX 10.
(Excerpt) Read more at cnbc.com ...
Let me take this offer to my manager. He’s in a good mood today.
230 Seats might be a little too much capacity for Ryan, but I could be wrong.
Doesn’t the 737 MAX have a brand problem? Won’t prospective passengers balk when they hear the name?
They can wait for the passenger market to recover. I’m guessing Boeing is still sitting on a pile of MAX inventory and RyanAir knows it (just fly into BFI or RNT. You can’t miss them all)
I agree. Make a deal. Make the sale. Let a carrier fill your product with passengers and put them in the air to prove the MAX is back.
BA should take a hit when the market opens. I always trade BA wrong. Just when I think it will go one way news comes out and swings it the other way. Glad I am not in it at the moment.
I’m. With you sitting on a lot of BA shares at $238.00. Long term it should be ok but BA will drop some more on Tuesday to $205.00. Should buy more shares but BA is a mess.
Currently Ryan has 467 planes of which 438 are BA 737’s. They also have 29 airbus planes. So this is only a negotiating tactic from Ryan as it would be too costly to convert their fleet away from BA.
They currently had 208 737 Max planes on order.
MD culture is alive & well at Boeing...
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