Daily Management Review

Boeing receives first order for 737 Max after US flight ban is lifted


Ryanair has placed a multi-billion dollar order for a Boeing 737 Max, the Financial Times reports with reference to the head of the carrier Michael O'Leary. This is the first deal for the company after investigating two aircraft crashes, which claimed more than 300 lives in 2018.

Vertical Research Partners aerospace analyst Rob Stallard said in a conversation with the publication that Ryanair "never intended" to expand its fleet with a new type of aircraft, but "it all came down to money". The amount of such an order is about $8 billion, writes FT. Usually aircrafts are sold at a discount of around 50% off the prices in the catalogue, but in the current environment the discount was probably even greater, the FT said. Representatives of Ryanair and Boeing told the newspaper that the deal involves a "moderate price reduction".

Earlier Reuters reported about Ryanair's readiness to order Boeing 75 additional 737 MAX aircraft with reference to interlocutors in the aviation industry. The agency reported that the carrier can pay only one-third of the catalogue price for the aircraft.

Against the background of news about the new order, the value of Boeing shares on the New York Stock Exchange (NYSE) increased by 7.77% to $241.23.

In November, the U.S. Federal Aviation Administration (FAA) rescinded its decision to ban 737 MAX flights. The watchdog also published a directive describing the changes required to resume flights and the requirements for the pilot training process. The FAA emphasised that flights can only resume once these conditions have been met. As the FT notes, it is expected that regulators from other countries will also allow the aircraft to return to the sky "in the coming weeks".

source: ft.com