Ryanair could buy planes from China or Russia

The Daily Telegraph ^ | 01 Feb 2011 | Alistair Osborne

[sukhoi-30mki]

Ryanair could buy planes from China or Russia

Low-cost airline Ryanair raised the prospect of buying new aircraft from China or Russia as it fell to a €10.3m (£8.8m) net loss in its third-quarter, hit by air traffic control strikes in Europe and the pre-Christmas snow.

By Alistair Osborne 6:30AM GMT 01 Feb 2011

Michael Cawley, deputy chief executive, said that having failed to agree a deal for 200 new planes from either Boeing or Airbus, the carrier's growth would slow dramatically over the next two years.

Ryanair expects passenger volumes to rise 11pc to 73.5m in the year to March 31, 2011, on top of a 14pc increase the previous year. For the next two financial years, however, growth slows to 7pc and 6pc as the carrier takes delivery of far fewer aircraft.

"If we can't get aircraft at the prices that make sense for us, given fuel prices and the fares we can earn from passengers, we will not expand beyond the level we are projecting of 300 aircraft and 83.5m passengers by March 2013," Mr Cawley said.

He said there was "no progress to report" in talks with Boeing and Airbus but added: "We're talking to everyone, the Russians and the Chinese as well." Asked if Ryanair would seriously place a major order with an untried supplier from China or Russia, Mr Cawley said: "We would do anything seriously that would save us money."

Failure to agree a new aircraft deal would see Ryanair, with €2.3bn of gross cash, pay another special dividend following last year's €500m payment to investors.

[rawhide]

Go ahead RyanAir, dig your own grave!

[BfloGuy]

A perfectly sensible negotiating point. Why let Boeing or Airbus think they own the market? I don't care much for Ryanair, but the guy's a marketing genius.

I suspect he knows what he's doing.

[Seruzawa]

... and 83.5m passengers by March 2013," Mr Cawley said.

If you buy Russian or Chinese aircraft don't expect me to be one.

[NavyCanDo]

This would surprise me. I have been at events where Michael O’Leary the CEO of Ryanair spoke, and he was adamant that he would never have any airplane in his fleet but the 737-800. The only two airlines to go through the post 9/11 downturn with positive cash flow Ryanair and Southwest fly all Boeing. But on the other hand O’Leary is not beyond putting pressure on the manufacturers to keep the cost of the airplanes down, even if means threatening to discuss terms with China.

[Yo-Yo]

An empty threat to be used in future purchase negotiations with Boeing. Ryanair operates using the same model as Soutwest: A one aircraft type fleet. It saves money on logistics, maintenance, and crew training.

Although O'Leary has made outrageous "proposals" in the past including pay toilets onboard aircraft, to standing room only seating. (More publicity stunts than serious ideas)