IRISH budget airline Ryanair has made a deal with massive US aerospace company Boeing for up to 200 of its 737 Max planes, in a deal that could be worth up to $22bn (£13.7bn) in total.
The deal will see Ryanair commit to buy 100 of the new 737 Max 200 series, valued at $11bn at current list prices, with the option to buy another 100 of the planes.
Ryanair chief executive Michael O’Leary said “These new ‘gamechanger’ aircraft will allow Ryanair to lower our costs and airfares, while improving our customer experience.”
“I hope it will hasten in an era of a new price war in Europe over the next 10 years, which like all the old price wars, Ryanair will win.” he said at the press conference in New York where the deal was announced yesterday.
The plane is a modification of Boeing’s 737 Max 8 aircraft, modified to provide up to 200 seats, and providing up to 20 percent better fuel efficiency per seat than the most efficient single-aisle airplanes today, according to Boeing.
Boeing chief executive Ray Conner said “The 737 Max 200 is the perfect fit for Ryanair, providing improved efficiencies, 20 per cent lower emissions, increased revenues and a high level of passenger comfort.”
Ryanair said it will take delivery of the new planes from 2019, and expects them to help it grow its passenger numbers from 82m in 2014 to over 150m by 2024.