Ryanair buys big from Boeing

Ryanair's order, announced on Monday, covers the 737 MAX 200 plane, touted by Boeing as a fuel-efficient vehicle for the important single-aisle civilian market.

According to the US aircraft maker's price list, the order would be worth a maximum of $11 billion (8.5 billion euros) for 100 planes. However, an order of this size usually carries a discount in the double-digit percentage region.

Ryanair said the purchase would enable it to meet its growth targets, which call for an increase in passenger numbers from an estimated 82 million in 2014 to about 150 million in 2024.

Ryanair Chief Executive Michael O'Leary told a news conference in Dublin, Ireland, that the order would "change the game for low-fare air travel in Europe."

O'Leary also said Ryanair was planning to use the jets to enter new markets in Europe and challenge incumbent carriers such as Germany's Lufthansa and French carrier Air France.

"I hope it will hasten a new era of price wars in Europe over the next 10 years," he added.

Ryanair is the launch customer for the 737 MAX 200, the latest version of the venerable 737, which will accommodate up to 200 passengers.

The Dublin-based budget carrier says it will likely fit the planes with 197 seats - eight more than in its current 737 fleet, and considerably more than the 160 seats typical for other single-aisle planes.

Airlines have already ordered more than 2,200 737 MAX jets. Boeing expects to deliver the plane in 2017, 50 years after the first 737 model flew. Its main competitor is the Airbus A320 neo, which is expected to enter service at the end of 2015.

In 2013, Ryanair already bought 175 Boeing planes of the current 737-800 type for $15.6 billion. O'Leary said the airline would stick to the order in spite of Boeing's upgrade.

Ryanair only uses Boeing 737 aircraft, of which it has 303 in operation, with plans to enlarge this fleet to 500 by 2019.

uhe/sgb (Reuters, dpa, AFP)