Ryanair says likely to shelve 200-plane Boeing deal
08 December 2009 @ 13:26
BRUSSELS (Reuters) - Ireland's Ryanair is likely to shelve plans to buy 200 Boeing aircraft because the U.S. plane maker wants to change the delivery conditions, Ryanair Chief Executive Michael O'Leary said on Tuesday.
"We have effectively almost reached agreement on price for a 200-aircraft order ... but the deal is unlikely to take place because now they want to go back and change delivery conditions," O'Leary told Reuters in an interview.
O'Leary, renowned in the industry for driving hard bargains, already warned last month that talks on ordering 200 aircraft for 2013-16 delivery had progressed little and that he might slow down Ryanair's rapid growth from 2013.
"Last week we had pretty much reached agreement with them on price, then over the weekend they wanted to change delivery conditions," he said.
"We're going to make a final decision at the board meeting next Thursday. Unless there's some change in their position over the next week, it's off."
O'Leary said he had no alternative plan to buy aircraft from Boeing's European rival, Airbus.
"We're not even talking to Airbus now," he said. "Airbus don't believe we would buy Airbus aircraft, but they're wrong."
He ruled out a repeat offer to buy Irish flag carrier Aer Lingus, which plans to cut jobs and routes.
Source: Yahoo Finance/Reuters
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