Boeing Co’s (NYSE: BA) largest customer outside the U.S. and European — the budget airline Ryanair Holdings Plc (NASDAQ: RYAAY) — said on Monday it has ended talks with the planemaker related to a potential new order worth billions of dollars for the 737 MAX 10 jets due to differences over pricing.
What Happened: The European budget carrier’s decision comes after months of delayed negotiations for the largest version of the 737 MAX when Ryanair re-ordered a smaller model in December.
“We are disappointed we couldn’t reach an agreement with Boeing on a MAX10 order,” Ryanair CEO Michael O’Leary said.
“However, Boeing has a more optimistic outlook on aircraft pricing than we do, and we have a disciplined track record of not paying high prices for aircraft.”
See Also: Boeing’s Delivery Of New 787 Dreamliners May Not Be Delivered Till Late Oct: WSJ
As per O’Leary, this may explain why in recent weeks other large Boeing customers such as Delta Air Lines (NYSE: DAL) and the British airline company Jet2 have been placing new orders with Airbus SE (OTC: EADSY) instead.
The 737 MAX competes with Airbus’s A320.
Why It Matters: Ryanair’s fresh order would have provided Boeing a much-needed boost for the beleaguered 737 MAX jet as the planemaker rebuilds confidence around it after the aircraft line was grounded for 20 months until November after two fatal crashes.
The Dublin-based airline has been a big buyer of the 737 MAX, buying 75 of the aircraft last year.
Price Action: Boeing shares closed 1.20% lower at $218.17 on Friday. Ryanair shares closed 0.93% higher at $108.11 on Friday.
© 2021 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
This post was originally published on https://stocksnewsfeed.com/benzinga/boeing-bleeding-orders-to-airbus-due-to-unrealistic-pricing-says-ryanair-ceo-as-companies-end-talks-on-aircraft-purchase/
