Potential US Tariffs Could Derail Carrier’s Relationship With Boeing

Low-cost carrier Ryanair has confirmed that incoming tariffs under US President Donald Trump could put an end to its long-standing commitment to Boeing and instead make it a customer for Chinese plane maker COMAC. This statement earned some words of caution from US officials.

Ryanair CEO Michael O'Leary allegedly made several comments hinting that he would be willing to make the switch to Chinese-made jets if the price was right. And, if current tariff policies are enforced, the transition may become a real possibility.

This triggered a warning letter from US Representative Raja Krishnamoorthi, the top Democrat on the House Select Committee on the Chinese Communist Party. He brought up concerns that China's Commercial Aircraft Corporation (COMAC) was too engaged with the nation’s military and had stolen intellectual property from foreign suppliers. These are both fairly common rumors, with many believing that the manufacturer’s C919 jet project involved some sort of industrial espionage.

"Respectfully, U.S. and European airlines should not be even contemplating the future purchase of airplanes from Chinese military companies,” Krishnamoorthi argued.

Despite its intent, the letter just shows Ryanair that it is in a lose-lose situation. Being required to pay significantly higher sums for the same Boeing orders would not be a solid or sustainable option for the low-cost carrier.

While Boeing’s near-direct competitor Airbus seems like the next logical choice, the Irish airline was clear about wanting to explore all alternatives if its typical vendor was no longer the best pick. This is what brought it to COMAC and its narrow-body C919, which was awarded domestic safety certification in 2022 before entering service in 2023. It has not yet been certified in Europe or the US, and likely won’t be for many years.

FMI: www.ryanair.com