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Ryanair Holdings PLC, a Dublin-headquartered low-cost airline, reportedly told The Boeing Company that it would buy the planes that customers would reject in the United States. The Irish carrier said that if the American customers refused to take the 737 MAX 10 planes they originally ordered, they would take them instead.
Condition for the Deal
Reuters reported that executives of Ryanair said on Monday, Jan. 29, that the company is willing to take over the sales contract in case of rejection from the original buyer under one condition. The executives said Boeing must sell them the 737 MAX 10 planes at the "right price."
While Ryanair is not saying it directly, it tells Boeing to give them hefty discounts. If the U.S. customers indeed refused to take their orders from the aircraft maker, the company would suffer huge losses. So, rather than losing money, Boeing could give Ryanair reasonable rates lower than the original.
"We have told them if some of these American airlines do not want to take the MAX 10 aircraft, Ryanair will take those aircraft," Mike O'Leary, Ryanair Group's chief executive officer, said during the presentation of the company's quarterly results.
In any case, Ryanair's move comes after Scott Kirby, the CEO of United Airlines, said last week that the company will put up a new fleet plan that does not include Boeing's Max 10 planes. It should be noted that the American carrier made this declaration even if it had already placed an order for 277 jets of this model.
Ryanair Cuts Annual Profit Forecast
Meanwhile, according to RTE News, Ryanair cut its profit forecast for the year earlier today. This move came after some online travel agents discontinued selling Ryanair flights, forcing the company to lower its fares to get more passengers. The Irish carrier admitted that this sudden decision may affect yields per passenger in the first quarter of this year.
"While traffic and fares were ahead of the prior year, close-in Christmas/New Year loads and yields were softer than previously expected as Ryanair lowered prices in response to the sudden (but welcome) removal of flights from OTA (online travel agent) Pirate websites in early Dec," the company said.
Photo by: Andrew Dawes/Unsplash
