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Ryanair boosts Boeing with 1.9-billion-dollar jet deal AFP

Thu, 31 May 2007 05:03 AM
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Ryanair boosts Boeing with 1.9-billion-dollar jet deal
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Low-cost Irish airline Ryanair gave a boost to US aircraft maker Boeing on Thursday by ordering an extra 27 Boeing 737-800 jets worth 1.9 billion dollars.

The purchase, which was previously recorded by Boeing as being from an unidentified customer, was worth the equivalent of 1.4 billion euros or 962 million pounds at list prices, the two groups announced.

The order for Boeing came just one day after its European rival Airbus clinched a 16-billion-dollar order with Qatar Airways for 80 of its A350 jets.

Thursday's news will take Ryanair's total firm orders for Boeing B737-800s to 308, of which 137 have already been delivered.

Ryanair, which along with other airlines has faced criticism for adding to carbon emissions with increased numbers of flights, added that the planes will be fitted with so-called "blended winglets" which will reduce emissions.

"The combination of the lowest per seat operating cost and the reliability of these Boeing 737-800s will benefit millions of additional passengers in the coming five years as we extend our route network," said Ryanair deputy chief executive Howard Millar in a statement announcing the news.

The airline added that the order would take Ryanair's total fleet size, including planned disposals, to 262 aircraft by 2012.

"The 737-800 continues to demonstrate its exceptional suitability for the low-fare business model," added Marlin Dailey, Boeing vice president of sales for Europe, Russia and Central Asia.

"It consistently generates more revenue and more profit through industry-leading reliability and higher utilization."

In the current year, Ryanair expects to carry 42 million passengers on 492 routes across 25 European countries.

Meanwhile, the Dublin-based carrier aims to start flying between Europe and the United States within four years' time, according to a recent report.

Ryanair would create a long-haul no-frills carrier, independent of Ryanair, that would mean the purchase of up to 50 widebody Airbus A350s or Boeing 787s, according to reported comments from chief executive Michael O'Leary.

The company's push into the transatlantic market is being made possible after EU transport ministers gave clearance last month for plans to free up the transatlantic aviation market under a long-sought "open skies" accord.

Ryanair currently increases group revenues by charging passengers to take baggage on board. Its ticket prices are advertised excluding taxes.

The price of shares in Ryanair climbed by 1.73 percent to 5.30 euros in Dublin late morning trading. The Irish Overall Index was up 0.31 percent at 9,878.12 points.


Copyright 2008, by AFP . All rights reserved


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