Ryanair to buy 175 Boeing Next Gen 737-800s
March 20, 2013, Dublin, Ire. - Ireland-based low-cost carrier Ryanair has entered into an agreement with Boeing to purchase 175 narrow-body Next-Generation 737-800 jetliners, as part of its efforts to increase its fleet by a third to 400 aircraft.
Around 75 of these new aircraft will replace some of Ryanair's existing fleet of 305 Boeing 737s, while the remainder will enable the carrier to strengthen its low-cost airline service.
The agreement was signed by Ryanair CEO Michael O'Leary and Boeing Commercial Airplanes president and CEO Ray Conner in New York.
When finalised, the deal is estimated to be worth $15.6 billion based on list prices and will be the largest ever aircraft order from an European airline.
Boeing stated that the deal will be posted as a firm order on its orders and deliveries website once it is finalised.
Ray Conner said: "We are pleased that the Next-Generation 737 has been and will continue to be the cornerstone of the Ryanair fleet."
Ryanair is expected to receive the new 737-800s, which can accommodate up to 189 passengers, between 2014 and 2018.
The airline is now expected to grow its service by 5 per cent annually over the next few years, taking its traffic to more than 100 million passengers by March 2019, and also create about 3,000 new jobs at its aircraft bases across Europe.
Ryanair noted that it plans to use the additional capacity to tap substantial growth opportunities that are being created as several Europe's flag carrier and smaller airlines are restructuring and reducing their short-haul operations.
Ryanair said it would continue to evaluate the benefits of Boeing's 737 MAX aircraft, which is scheduled to enter service in 2017.