Ryanair, the Irish discount airline, has announced its willingness to acquire any additional Boeing 737 Max deliveries from airlines that no longer want them. The move provides support to the embattled US aircraft manufacturer, which has been facing criticism for quality issues following a mid-air panel blowout earlier this month.
The low-cost carrier stated that it would gladly add Boeing 737 Max 10 jets to its fleet in 2026, a year earlier than initially scheduled, in case dissatisfied customers defer or cancel orders for the extended version. Ryanair's Chief Financial Officer, Neil Sorahan, expressed his enthusiasm for the aircraft, stating that the airline would gladly accept more if they become available at the right price.
This overture from one of Boeing's major European customers comes at a crucial time for Boeing's Chief Executive Officer, Dave Calhoun, as the company faces intense scrutiny regarding manufacturing quality after the recent incident involving the detachment of a door-sized panel during an Alaska Airlines flight. United Airlines, another major customer, recently removed the Max 10 from its internal plans due to multiple delays. Bloomberg has also reported that United is exploring ways to terminate its agreement with Boeing.
Ryanair's remarks not only lend support to Boeing's negotiations with other airlines but also potentially position the low-cost leader of Europe for increased access to any available delivery slots that may arise.
Ryanair's CEO, Michael O'Leary, known for being a shrewd negotiator, could utilize these additional planes for the airline's ambitious expansion plans, particularly during a period of tight aircraft supplies. O'Leary has previously criticized Boeing harshly for its delivery delays, but the latest announcement indicates a potential change in stance.
Analysts suggest that Ryanair's significant status as a customer could give the airline an advantage in these discussions with Boeing. However, the price at which Ryanair is willing to acquire the additional Max 10s will also be a crucial factor determining whether the airline proceeds with the deal.
Shares of Boeing experienced a slight decline following the news, while Ryanair's stock saw an increase in Dublin.
CFO Sorahan revealed that he has already witnessed quality improvements at Boeing after visiting its manufacturing facility, expressing confidence in Calhoun and his team. Ryanair still expects to receive 50 of the Boeing 737 Max aircraft before the summer peak season, which is seven planes less than originally planned but unchanged from their expectations prior to the Alaska Airlines incident.
In response to United's CEO, Scott Kirby, who expressed frustration with Boeing last week, Michael O'Leary referred to Kirby's comments as "unhelpful and stupid." United declined to comment on O'Leary's statement.
O'Leary added that a line of "ravenous aviation lessors" would be eager to take over the Max 10s if other airlines decide to drop the model from their growth plans. Ryanair, however, would be the first in line to seize these aircraft if they become available.