- Talks on MAX 10 end due to pricing, Ryanair says
- Ryanair says needs up to 250 jets
- No sign of talks with rival Airbus
Boeing (BA.N) faces a standoff with one of its biggest customers after Ireland’s Ryanair (RYA.I) 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. planemaker 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.
Even after steep industry-wide discounts such a deal would still be worth well over $10 billion, analysts estimate.
But last week, Ryanair Group Chief Executive Michael O’Leary poured cold water on chances of a quick deal, saying he would be surprised if agreement was reached this year. read more
On Monday, he said talks had collapsed.
“We are disappointed we couldn’t reach agreement,” O’Leary said. “However, Boeing have a more optimistic outlook on aircraft pricing than we do, and we have a disciplined track record of not paying high prices for aircraft.”
Boeing also vowed to exercise discipline.
“Ryanair is a long-standing partner. We value their business and are committed to supporting them,” a Boeing spokesperson said. “At the same time, we continue to be disciplined and make decisions that make sense for our customers and our company.”
Ryanair shares rose 1.8%. U.S. markets, where Boeing is listed, were closed for the Labor Day holiday.
SOURCE REUTERS
