European low-cost carrier Ryanair has announced an order for up to 300 new Boeing 737 MAX 10 planes, confirming a blockbuster order that has been rumored for days.
In an announcement and signing ceremony at Boeing’s headquarters in Arlington, Virginia on Tuesday morning, Ryanair CEO Michael O’Leary said the new planes are expected to be delivered between 2027 and 2020. 2033, pending approval from the airline board.
Want more specific airline news? Sign up for TPG’s free biweekly aviation newsletter.
It includes 150 firm orders for the largest version of Boeing’s 737 MAX aircraft and options for 150 more.
“Historically, we have never failed to not exercise our options,” O’Leary said in the announcement. “So we’re constantly expecting that we’ll be switching those options in the near-term.”
Of the new jets, 150 will replace the older 737 NG aircraft, and the rest will be used for development, he added.
The order is worth about $40 billion at list prices, though airlines and other customers often get discounts.
The famously frugal O’Leary joked, “I was asked to say that there was a competitive discount that was agreed upon, “although I don’t think it’s particularly competitive.”
“We paid more per seat than last time [we ordered aircraft]”, he added. “But we’re still extremely happy with the deal we’ve made.”
Sign up for our daily newsletter
Ryanair has been in talks with Boeing for a large order in 2021, although negotiations have fallen through because of a dispute over pricing. O’Leary said it was “a bit of a hassle”.
Mr. O’Leary said the new plane will have 228 seats. Its 737 MAX 8-200, a high-density version of the 737 MAX 8, has 197 seats with an average pitch of 28 to 29 inches.
It is the ultra-low-cost airline’s largest order and the latest in a series of large orders for Boeing over the past six months.
Like European rival Airbus and manufacturers in other sectors, Boeing has struggled to ramp up production after the pandemic ravaged supply chains around the world. The airline can currently produce about 31 MAX aircraft per month at its Renton, Washington facility. However, it plans to grow to 38 planes per month, aircraft manufacturer said in april. Boeing plans to open another production line next year at the 737 MAX factory and will scale up production to 50 planes a month by 2026, Boeing CEO Dave Calhoun said.
737 MAX 10 is largest variant in the MAX . family. Along with the smaller but longer range MAX 7, it has not certified by the Federal Aviation Administration; this means that no equipment has been delivered or put into service yet.
Do not miss: We got our first look inside Boeing’s 737 MAX 10 prototype
Certification has been delayed due to a law that went into effect earlier this year requiring all newly certified aircraft to have a specific type of cockpit warning system. Boeing and airlines say this will affect popularity among the 737 MAX and thus harm safety.
Finally, the aircraft that began certification work before the new requirement was issued was extended. The conditional extension of Boeing retrofits existing 737 MAX aircraft with several cockpit upgrades.
In a press conference following the announcement, Calhoun said Boeing expected the two variants to be certified by 2024. “We won’t give you a date because that’s not our job, that’s it. will be the FAA’s,” he added.
unified airline And Delta Air Lines is one of the customers for MAX 10, while Southwest Airlines ordered MAX 7.
While the higher-capacity MAX 10s bring new economics to Ryanair and can carry 30 extra passengers per flight, don’t expect the in-flight experience to change much. O’Leary said the airline has no plans to add things like extra legroom seats or extra toilets to accommodate a larger number of passengers.
Related: A look inside Boeing’s 737 MAX factory
He also said the airline would not charge people to use those toilets – again countering a long-standing rumor and joke.
O’Leary joked: “The hopeless and despicable rumor that we will charge for the use of the restroom is still untrue. “The toilet will remain free on Ryanair!”
