Ryanair, Europe’s low-cost airline, has announced a significant order with Boeing for up to 300 737 MAX 10 planes valued at $40 billion, with 150 of them being firm orders.
The negotiations for the order have been ongoing since before the COVID-19 pandemic but were suspended in September 2021 as both Ryanair and Boeing failed to come to a mutually agreeable pricing point.
However, in March, the airline’s Group CEO, Micheal O’Leary, revealed that Ryanair had ultimately accepted that it would have to pay more for the aircraft.
Ryanair Magnificient Boeing 737 Order
The recent order made by Ryanair for 300 Boeing 737 MAX 10s marks the total number of MAXs ordered by the Irish low-cost carrier to 360.
According to Boeing’s order records, Ryanair placed its first order of 100 firm orders in November 2014. The carrier later added 10 in June 2017, 25 in March 2018, and 75 in December 2020.
This latest batch of orders is conditional upon approval from Ryanair’s shareholders at the company’s AGM on September 14th.
In response to the recent announcement, Michael O’Leary, Ryanair’s Group CEO, expressed his thoughts saying, “We are pleased to have signed a record-breaking aircraft order with our partner Boeing for up to 300 MAX-10s.
“We anticipate that these new, larger, more eco-friendly, and efficient aircraft will bring about substantial revenue and traffic growth throughout Europe. We expect to pass on these unit cost savings to our passengers in the form of lower airfares.”
“The additional seating capacity, fuel-efficient technology, competitive pricing, and robust financial position will widen the cost difference between Ryanair and competing airlines in the EU. Further making the Boeing MAX-10 the optimal aircraft for our expansion, passengers, employees, and shareholders.”
What’s included in the Ryanair Boeing order?
Ryanair currently operates the modified MAX 8200, a variant of the 737 MAX 8 with extra emergency exits. Which can accommodate up to 197 seats.
With the addition of the Boeing 737 MAX 10, the airline is set to increase its passenger capacity on popular routes. However, Ryanair’s Group CEO, Michael O’Leary, views this as a balancing act.
In a conversation with Simple Flying in March, Michael O’Leary shared that Ryanair was exploring the option of ordering either the 8200s or the MAX 10s.
The MAX 10s have the advantage of allowing Ryanair to carry more passengers on popular routes. However, O’Leary expressed concern about the additional 30 seats in the MAX 10s. Subsequently, the potential for a yield dilution if they had to fill them six times a day. He added that Ryanair would need a much more competitive seat price to justify the extra 30 seats.
In addition to seat price, crew requirements are another important factor. To consider when purchasing the Boeing 737 MAX 10.
According to the European Aviation Safety Agency (EASA), an aircraft must have one cabin crew member for every 50 seats or part thereof. This means that even if there is only one passenger on a flight with 230 seats, the airline would still need five cabin crew members instead of the four required in Ryanair’s existing fleet.
This would increase the cost of cabin crew for each flight by 25%. This means that the cost savings must come from other areas to ensure a competitive seat price.
Bottom Line
Ryanair has announced that its new Boeing 737 MAX 10 planes will have 228 seats. A 21% increase from its current Boeing 737-800s. These larger aircraft are expected to be delivered between 2027 and 2033. Half of the order was intended to increase the airline’s fleet. The other half is to replace older Boeing 737-800s.
The additional seats and planes will increase the carrier’s capacity, something that Ryanair is looking forward to. In the last fiscal year, the Irish low-cost airline set a new record, carrying 168 million passengers. By 2034, the company aims to increase this number by 80% to 300 million guests.
Stay tuned with us. Further, follow us on social media for the latest updates.
Join us on Telegram Group for the Latest Aviation Updates. Subsequently, follow us on Google News.