Ryanair In USD$7 Bln Order Talks With Boeing, Airbus

February 17, 2009

Irish low-cost carrier Ryanair is in talks with both Boeing and Airbus to order 200 planes for USD$7 billion with delivery starting in 2013, CEO Michael O'Leary said on Tuesday.

Ryanair is not in advanced talks with either of the two on the order and is happy to wait until the plane makers' "order book collapses" to negotiate a better deal, he said.

The planes have a list price of about USD$70 million each but Ryanair expects to negotiate at least a 50 percent discount to pay about USD$35 million - USD$40 million each for a total order of roughly USD$7 billion, he said.

"The sticker price is USD$70 million, but we would never dream of paying anything like that," he told reporters after a news conference on the airline's plans in Italy.

Despite Ryanair's historic relationship with Boeing, O'Leary said he would order planes from Airbus if they offered a cheaper price. In that case, Ryanair would simply designate some of its airport bases as those for Airbus planes, he said.

The planes would be delivered between 2013 and 2016, he said. Ryanair has a fleet of 171 Boeing 737-800s, and has firm orders to bring that up to 310 planes by 2012, he said.