NEW YORK: Irish budget airline Ryanair agreed to buy 100 aircraft from Boeing for $11 billion, with an option to purchase another 100 planes from the aerospace giant, the companies announced Monday.
The order covers the 737 Boeing MAX 200, which Boeing touts as a fuel-efficient vehicle for the important single-aisle civilian market. The planes will accomodate up to 200 seats, up from the 160 in other single-aisle planes.
Ryanair said the giant order will enable it to meet its growth targets, which calls for it to expand from 82 million customers in 2014 to more than 150 million in 2024, which marks the end of the delivery stream of the planes under Monday’s order.
“It’s going to change the game for low-fare air travel,” Ryanair chief executive Michael O’Leary said at a news conference. “It’s also going to change the game in Europe.”
O’Leary said Ryanair plans to use the jets to enter new markets in Europe and challenge incumbent carriers.
“I hope it will hasten a new era of price wars in Europe over the next 10 years,” he said.
The move comes two months after Boeing said it was studying plans to offer more seating in its upcoming 737 MAX by introducing a version with 200 seats, 11 more than the current maximum.
A new order from Europe’s biggest no-frills carrier would mark a new phase in efforts by Boeing and European rival Airbus to appeal to ultra-low cost carriers.
Both manufacturers are adding seats to drive down the operating costs per seat, the key driver of aircraft economics.
“The 200-seat version is almost tailor-made for Ryanair,” said Stephen Furlong, an analyst with Davy Stockbrokers in Dublin. “In addition to the fuel efficiency, the extra seats should give them an extra 5 percent unit cost savings.”
Keeping up demand for the most popular types of airliner has become the Holy Grail for both planemakers as they embark on ambitious production plans, with higher output volumes playing an important role in cutting costs and boosting margins.
In June, Airbus said it would increase the maximum number of seats on its revamped A320neo to 189, matching the capacity limit on the main variant of the Boeing 737 MAX and providing fuel savings of 3.5 percent per seat.
Weeks later, Boeing leapfrogged its European rival by announcing plans to offer a 200-seat version of the 737-8 MAX, which Boeing Commercial Airplanes Chief Executive Ray Conner said would offer unspecified cost savings of 5 percent per seat.
Ryanair orders 100 Boeing 737 planes for $11 bn
Ryanair orders 100 Boeing 737 planes for $11 bn
Closing Bell: Saudi main index closes in red at 10,947
RIYADH: Saudi Arabia’s Tadawul All Share Index dipped on Thursday, losing 208.20 points, or 1.87 percent, to close at 10,947.25.
The total trading turnover of the benchmark index was SR4.80 billion ($1.28 billion), as 14 of the listed stocks advanced, while 253 retreated.
The MSCI Tadawul Index decreased, down 25.35 points, or 1.69 percent, to close at 1,477.71.
The Kingdom’s parallel market Nomu lost 217.90 points, or 0.92 percent, to close at 23,404.75. This came as 24 of the listed stocks advanced, while 43 retreated.
The best-performing stock was Musharaka REIT Fund, with its share price up 2.12 percent to SR4.34.
Other top performers included Al Hassan Ghazi Ibrahim Shaker Co., which saw its share price rise by 1.18 percent to SR17.20, and Saudi Industrial Export Co., which saw a 0.8 percent increase to SR2.51.
On the downside, Abdullah Saad Mohammed Abo Moati for Bookstores Co. was among the day’s biggest decliners, with its share price falling 9.3 percent to SR39.
National Medical Care Co. fell 8.98 percent to SR128.80, while National Co. for Learning and Education declined 6.35 percent to SR116.50.
On the announcements front, Red Sea International said its subsidiary, the Fundamental Installation for Electric Work Co., has entered into a framework agreement with King Salman International Airport Development Co.
In a Tadawul statement, the company noted that the agreement establishes the general terms and conditions for the execution of enabling works at the King Salman International Airport project in Riyadh.
Under the 48-month contract, the scope of work includes the supply, installation, testing, and commissioning of all mechanical, electrical, and plumbing systems.
Utilizing a re-measurement model, specific work orders will be issued on a call-off basis, with the final contract value to be determined upon the completion and measurement of actual quantities executed.
The financial impact of this collaboration is expected to begin reflecting on the company’s statements starting in the first quarter of 2026, the statement said.
The company’s share price reached SR23.05, marking a 2.45 percent decrease on the main market.
