Ryanair today published the details behind its multi-billion-dollar acquisition of 175 narrow-body passenger planes from Boeing and the budget carrier claimed it had wangled discounts so it paid 2005 prices for the jets.
The list price for each Boeing 737-800 aircraft is $78 million (£51.6 million), plus $2.9 million for their fit-out, but Ryanair said Boeing had given it “certain price concessions” that meant its final bill was “not dissimilar to the net price agreed for the aircraft delivered under the 2005 Boeing contract”.
At the time of that deal, when Ryanair also bought 175 737 planes, analysts estimated Michael O’Leary’s airline had paid around 50% of each jet’s listing price.
The airline’s success in squeezing Boeing contrasts with its own pricing philosophy: average fares have jumped by almost 20% since 2005.
Ryanair’s latest deal grows the carrier’s fleet to 375 aircraft by 2019, as alongside the purchase, 105 older jets are to be returned or retired.
Chairman David Bonderman said the Boeing deal should help Ryanair to grow passenger numbers by 25% to 100 million a year.
Ryanair will put the deal to a shareholder vote next month “by virtue of the relative size of the Boeing contract compared with the size of the company.”
