Ryanair Chief Raises the Alarm: Fiery Speech Against "Chaos" at Boeing

2/27/2024, 1:00 PM

Boeing's 737 Max delivery issues also hit "valued customer Ryanair" hard. Airline CEO O'Leary threatens with summer schedule cuts and fires back sharply.

Eulerpool News Feb 27, 2024, 1:00 PM

Ryanair Warns as First European Airline of the Impact of Boeing's Delivery Problems with the 737 Max on their Daily Operations. Aviation Chief Michael O'Leary Expects that the Low-Cost Airline will Receive Fewer Boeing Aircraft by the End of June than Anticipated. This Could Lead to Ryanair Being Forced to Reduce Their Summer Schedule During the Busiest Time of the Year. Consequently, Passengers May Also Face Higher Ticket Prices.

The problems at Boeing began when on January 5th, an Alaska Airlines Boeing 737 Max 9 lost a section of its fuselage during a flight over the state of Oregon. As a result, the US Federal Aviation Administration (FAA) ordered the inspection of all aircraft of this type and imposed a flight ban. Ryanair was originally supposed to receive 57 aircraft of this type by the end of April, but last week Boeing announced that this will now not happen until the end of June. And even this statement does not seem certain, as O'Leary explained to journalists: "We are fairly certain that we will get 30 to 40. We are reasonably confident that we will get between 40 and 45. And now we are far less confident that we will get between 45 and 50."

For Ryanair, this delay in deliveries may mean restrictions in the summer flight schedule and thus also inconveniences for passengers. "If we only get 40 aircraft, we will have to announce some minor cuts in the schedule by the end of March," says O'Leary. This would mean that Ryanair will probably only carry 200 million passengers in this fiscal year, which begins in April, instead of the previously forecasted 205 million. These capacity constraints could make the airline less competitive compared to other budget airlines like Easyjet, especially on popular summer routes such as Málaga or Sicily.

Boeing confirmed to the news agency Reuters that there are problems with the delivery of the 737 Max aircraft and that regulatory standards must be met conscientiously. Regrettably, Boeing said, these delays are affecting Ryanair as a valued customer. The company is working on a comprehensive plan to improve the quality and delivery performance of the 737.

O'Leary was far less diplomatic in his remarks. He described the situation at the Seattle company as a "shitshow" and reiterated his call for a change in management. At Boeing, there were repeatedly optimistic promises that would soon be overturned. As a consequence, Ed Clark, the head of the Boeing 737 Max program, which includes the Max 9, was fired. His position was taken over by Katie Ringgold, who had previously been responsible for deliveries.

To Compensate for Losses, Ryanair Discusses Possible Compensation with Boeing. The Delays are Inexcusable, O'Leary Stressed. However, the Airline has No Time to Lose and Must Focus on the Goal of Finally Getting the "Damn Planes". If United Airlines or Other Carriers Cancel Their Orders for the 737 Max 10, Ryanair Would Be Ready to Take Them Over, Provided the Price is Right. This Would Allow the Company to Grow in 2027 or 2028.

In the meantime, O'Leary wants to pass on some of the costs of delivery delays to customers. Ticket prices are therefore expected to increase by five to ten percent this summer and by an average of 10 to 15 euros over the next five years. Despite everything, O'Leary remains confident and sees no reason to panic, even though the situation at Boeing is anything but optimal. "Right now, our focus is on getting the damn planes," the airline boss concludes.

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