Ryanair to Buy up to 200 Jets from Boeing

Ryanair Holdings PLC said on Monday that it would buy as many as 200 more-efficient Boeing Co. narrow-body jets as it seeks to grow the discount airline and maintain its cost edge over rivals.

The deal includes 100 firm orders for 737 Max jets, with options for 100 more, Boeing said in a statement. The firm order has a list price value of $11 billion, though large customers typically get discounts.

The deal "will expand our fleet to 520 aircraft by 2024 and create another 3,000 new jobs for pilots, cabin crew and engineers in Europe, while allowing us to grow traffic from 82 million last year to over 150 million annually by 2024," said the airline chief executive, Michael O'Leary. Deliveries will begin in 2019, Ryanair said.

EasyJet PLC, the Irish carrier's biggest rival, last year acquired 100 A320neo jets from Airbus Group NV, for "new engine option," to be delivered from 2017. The A320neo, like the 737 Max, combines more efficient engines with an existing aircraft.

Ryanair's purchase comes after Boeing said it would upgrades its 737 to accommodate more seats, something the Dublin-based airline has long urged. The model is being called the 737 Max 200. Ryanair will seat up to 197 passengers on the plane, and provide more leg room.

Mr. O'Leary called the new configuration a "gamechanger" and said it would use the plane to increasingly fly into primary airports vacated by network airlines that are paring short-haul services in Europe. The move mirrors easyJet's strategy.

Boeing and Ryanair have been in talks over the 737 Max deal for some time. The airline is a long-time customer and has placed several large purchases to gain big discounts.

Write to Robert Wall at [e-mail]

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