Ryanair Places Order for 75 Boeing 737 Max Jets | Financial Buzz

Ryanair Places Order for 75 Boeing 737 Max Jets

Ryanair (NASDAQ: RYAAY), Europe’s largest low-cost carrier, has ordered 75 additional 737 Max jets from Boeing, amounting to a total value of USD9 Billion. The order is the largest for the plane after its 20 month safety ban was lifted. Boeing shares shot up 5.2% following the news.

“This is the beginning of the fulfillment of a more robust order book,” Boeing Chief Executive David Calhoun said at a signing event in Washington DC. “I’ve always had faith that the order book would begin to fill with the return of the industry.”

The Irish airline had previously placed an order for 135 of the Max aircraft, making the carrier one of Boeing’s most important customers. However it had not yet received any aircrafts before the grounding took place. 

Similar to many other airlines, Ryanair has parked most of its aircrafts due to the ongoing pandemic and the lack of air travel. At the start of the pandemic, Ryanair grounded 99% of its planes. It has declined to inform how many remain parked. 

“For as long as the Covid-19 pandemic depresses air travel, we will use these new aircraft to replace some of our older Boeing [planes in our] fleet, which will remain grounded until pre-Covid demand returns,” said Ryanair CEO Michael O’Leary. “But as soon as the Covid-19 virus recedes — and it will in 2021 with the rollout of multiple effective vaccines — Ryanair …[will] rapidly restore flights and schedules.”

Following Boeing’s 737 Max two fatal crashes in 2018 that led to its grounding, faith in the aircraft diminished. Nevertheless upon recent approval from the Federal Aviation Administration, and new regulations in place, the planemaker is on the rise. 

“This is the beginning of the fulfillment of a more robust order book,” Boeing Chief Executive David Calhoun said at a signing event in Washington DC. “I’ve always had faith that the order book would begin to fill with the return of the industry.”