Another order for Boeing...

Tony Sepanski · 01-31-2003, 10:30 AM

Boeing lands huge order for 737s

By David Bowermaster
Seattle Times aerospace reporter

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Irish eyes are smiling on Boeing once again.
Ryanair, a rapidly expanding low-fare carrier based in Dublin, will announce an order for up to 100 737-800s at a news conference this morning in London.

The stunning order, worth up to $6 billion at list prices, will be a mix of firm orders and options, according to sources familiar with the discussions.

The planes come in addition to an equally eye-popping order Ryanair placed almost exactly a year ago for 100 737-800s plus 50 options.

It was not immediately clear, however, whether today's order includes the conversion of any of last year's options into firm orders.

The deal could be the largest of the year for either Boeing or its European rival, Airbus, as it comes in the middle of a prolonged global recession in the airline industry. Due to the industry's weakness, Ryanair likely received significant discounts from Boeing.

Indeed, some investment analysts have forecast that the two manufacturers could get as few as 400 orders between them this year.

Boeing Chairman Phil Condit said yesterday the company will deliver 280 airplanes in 2003 and 275 to 300 airplanes in 2004, with an upturn not likely until at least 2005.

Condit's delivery forecasts likely incorporated the anticipated new business from Ryanair.

Ryanair has been growing at a phenomenal rate, connecting a rapidly increasing number of European cities to its bases in London and Dublin, and launching new hubs on the Continent itself.

Indeed, at a news conference Wednesday at Stansted Airport in London to announce five new routes, Ryanair Chief Executive Michael O'Leary said such growth was driving the airline to pursue new orders from Boeing.

"We are in talks with Boeing about additional aircraft," O'Leary said. "We are talking about increasing the order size."

While a new order from the airline had been expected, the magnitude is likely to catch many in the industry offguard.

Nevertheless, O'Leary strongly hinted at the size of the order during a visit to Seattle in November, soon after Ryanair's rival easyJet announced an order for 120 planes from Airbus.

"The message to Boeing today is, you keep building them, we'll keep buying them, and together both of us will beat the crap out of Airbus in the next couple years," he said then.

An order for another 100 planes, O'Leary said, is "the right response to the Airbus-easyJet order: Let's step up (our) order and go after the buggers."

Ryanair has 31 737-800s in its fleet, and it is scheduled to receive two more next week.

01-31-2003, 10:53 AM

this is great for my Boeing stock!

Tracon Doug · 01-31-2003, 11:02 AM

Quote:

Originally posted by Tony Sepanski
Nevertheless, O'Leary strongly hinted at the size of the order during a visit to Seattle in November, soon after Ryanair's rival easyJet announced an order for 120 planes from Airbus.

"The message to Boeing today is, you keep building them, we'll keep buying them, and together both of us will beat the crap out of Airbus in the next couple years," he said then.

An order for another 100 planes, O'Leary said, is "the right response to the Airbus-easyJet order: Let's step up (our) order and go after the buggers."

Ryanair has 31 737-800s in its fleet, and it is scheduled to receive two more next week.

Aye! You gotta love the Irish!

01-31-2003, 02:04 PM

A light when it was dark. Now lets hope Air Tran goes with the 717's also, then that would be 250 planes ordered this year.

Spider-man · 01-31-2003, 02:42 PM

Wow, that's a nice big order for Boeing!

AV8TOR · 01-31-2003, 09:24 PM

That is excellent news! Good for Boeing and the 737!!

9V-SVC · 01-31-2003, 09:30 PM

That is great for Boeing . Glad to see both manufactures winning orders .