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Thu, Sep 09, 2021

Boeing, Ryanair Publically End Negotiations Over 737 MAX 10 Jets

Michael O’Leary Says He Would Be Surprised If Agreement Comes Before Year’s End

Boeing and Ireland’s Ryanair are involved in a rare public negotiation over the purchase of 737 MAX 10 jets, which Ryanair says has ended due to differences in price. The grounding of the MAX is no secret and Ryanair is the region's largest customer with 210 of the 197-seat MAX-8 200 on order. 

Ryanair, toying with the idea of a potential $33 billion deal for an order of up to 250 of the MAX 10, has publicly ended the talk without an agreement being reached. Even with a steep industry discount, that order could still be worth up to $10 billion.

Ryanair Group Chief Executive Michael O'Leary says he would be surprised if the deal could reach an agreement by the end of the year.

"We are disappointed we couldn’t reach agreement," O'Leary said. "However, Boeing have a more optimistic outlook on aircraft pricing than we do, and we have a disciplined track record of not paying high prices for aircraft."

Boeing keeps an optimistic outlook while holding ground on their own decision making history. "Ryanair is a long-standing partner. We value their business and are committed to supporting them," a Boeing spokesperson said. "At the same time, we continue to be disciplined and make decisions that make sense for our customers and our company."

Boeing has recently won a contract with United Airlines for and order of 150 MAX 10 aircraft. "It is likely Boeing and Ryanair will eventually cut a deal," one industry veteran said.

FMI: www.ryanair.com, https://www.boeing.com

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