Budget carrier Ryanair in Europe confirmed a massive purchase that had been circulating for several days by placing an order for up to 300 of Boeing's new 737 MAX 10 aircraft.
The new aircraft are expected to arrive between 2027 and 2033, subject to airline board approval, according to Ryanair CEO Michael O'Leary, who announced a signing ceremony on Tuesday morning at Boeing's Arlington, Virginia, headquarters.
It includes 150 firm orders and 150 options for Boeing's 737 MAX aircraft in their biggest configuration.
O'Leary stated during the announcement that "historically, we have never failed to take our options." Therefore, we continually anticipate converting those possibilities in due course.
He stated that 150 of the new jets will replace aging 737 NG aircraft and the remaining will be used for growth.
At last rates, the purchase is worth around $40 billion, but airlines and other clients frequently receive discounts.
The notoriously frugal O'Leary quipped, "I had been told to state that there was a competitive discount negotiated, but I didn't think that it was especially competitive.
"We paid more per seat than we did the last time [we ordered aircraft]," he continued. But we're still ecstatic about the agreement we struck.
Ryanair and Boeing had been discussing a significant order for 2021, but talks broke down because of a pricing issue. It was "a bit of a bust-up," according to O'Leary.
According to O'Leary, the new aircraft will be equipped with 228 seats. The 197 seats on the airline's 737 MAX 8-200, a high-density version of the 737 MAX 8, have an average pitch of 28 to 29 inches.
It was the largest single purchase ever placed by an ultra-low-cost carrier and the most recent in a string of sizable orders for Boeing over the previous six months.
Like its European rival Airbus and producers in other industries, Boeing has had difficulty ramping up production after the pandemic ravaged supply systems around the world. Currently, the airline's Renton, Washington, factory can produce around 31 MAX planes each month. However, the aircraft manufacturer stated in April that it intended to expand that to 38 aircraft every month. According to Boeing CEO Dave Calhoun, the 737 MAX facility will add another production line in 2019 and increase capacity to 50 aircraft per month by 2026.
The largest model in the MAX family is the 737 MAX 10. It has not yet been delivered or put into operation because it has not yet received certification from the Federal Aviation Administration, along with the smaller but longer-range MAX 7.
A law that would have required every newly certified aircraft to have a specific sort of cockpit warning system went into force at the beginning of this year, therefore certification was postponed. The 737 MAX family's level of commonality would be impacted, which would compromise safety, according to Boeing and airlines.
In the end, an extension was granted for aircraft on which certification work had begun before the implementation of the new rule. Boeing must enhance many cockpit systems on current 737 MAX planes before the extension would be granted.
Boeing anticipated that the two models would receive certification in 2024, according to Calhoun, who spoke at a news conference after the announcement. Because it will be the FAA's responsibility, not ours, he continued, "We won't give you a date."
Customers of the MAX 10 include United Airlines and Delta Air Lines, while Southwest Airlines has purchased the MAX 7.
Expect little to no change in the onboard experience even though Ryanair's higher-capacity MAX 10s can carry an additional 30 passengers every trip and offer fresh economics. To accommodate the increased number of passengers, O'Leary stated that the airline did not intend to add items like more seats with more legroom or more restrooms.
A long-running rumor and jest were once again refuted by him when he added that the airline will not charge passengers to use those restrooms.
O'Leary jokingly said, "There's still no truth to the desperate and diabolical idea that we're going to charge for entrance to the restrooms. "On Ryanair, the restrooms are still free!"
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