Ireland’s Ryanair continues to be one of the best run airlines on the planet. They have announced a major order for the Boeing 737 MAX 10 aircraft, which is no doubt good news for the Seattle manufacturer. With 150 firm orders and 150 options, it is a pretty big deal.
This is the largest order from an Irish company for a US manufactured product, for one thing. The airline uses Boeing as their exclusive supplier and has done for a very long time now, so the continuity should surprise no-one. Let’s have a look and see some details on this.
Boeing 737 MAX 10
Certification of the new Boeing 737 MAX 10 is expected in early 2024 and Ryanair expects deliveries to commence in 2027. They will then run through to 2033. Half of the new orders will be for fleet replacement while the remainder will be for expansion.
These will seat 228 passengers in the airline’s single class configuration, which is 31 additional seats when compared to their MAX 8 200 aircraft. As usual, the press release touts the cost savings, lower noise and environmental credentials that a new fleet bring.
Ryanair’s success throughout Europe continues unabated. The fact they expect to finance the transaction almost exclusively through operating cashflows underlines this. They have always stuck to their business model with virtually no deviation, which is probably partly why they continue to do so well.
The CEO of Ryanair, Michael O’Leary, was their CFO from 1988 and has been CEO since 1994. He will have 30 years at the helm next year and will be turning 63. There are probably plenty of years left in him to keep working but you have to wonder if there is a succession plan in place.
What do you think of this Ryanair order? Thank you for reading and if you have any comments or questions, please leave them below.
Featured image by Steve Knight on Flickr via Wikimedia Commons.