Business

Ryanair says aircraft orders unaffected by Boeing grounding

But incident could cause delays to manufacturing if processes are subject to additional regulatory checks, say analysts

Ryanair chief executive Michael O’Leary has publicly criticised Boeing in the past for production and delivery delays. Photograph: Nicholas T Ansell/PA Wire

Ian Curran
Mon Jan 8 2024 - 15:48

Ryanair does not expect the grounding of some Boeing 737 Max aircraft to have any impact on deliveries of craft it has ordered from the US plane-maker.

A piece of fuselage tore off the left side of an Alaska Airlines jet last Friday as it climbed following take-off from Portland, Oregon, forcing pilots to turn back and land safely with all 171 passengers and six crew on board. The US Federal Aviation Administration subsequently ordered the temporary grounding of some Boeing 737 Max-9 jets.

In response to questions from The Irish Times, Ryanair said on Monday that it noted the grounding of the aircraft but it has no 737 Max-9 aircraft in its fleet or on order.

“The issue which affected the Alaska aircraft does not apply to the Max-8 aircraft, which Ryanair operates, or the Max-10s, which Ryanair have on order,” a spokeswoman said. “Ryanair does not expect the Max-9 grounding to have any impact on either the Max-9 or the Max-10 aircraft.”

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The low-cost carrier is slated to receive the remainder of the Max-8 aircraft it has on order this year. After the aircraft was grounded worldwide between March 2019 and December 2020 due to safety concerns after two crashes, production and delivery of the Max-8 was further bedevilled by Covid and supply chain-related delays.

Ryanair chief executive Michael O’Leary criticised the plane-maker publicly over the delays before burying the hatchet with an order for 300 Max-10 jets last summer. The airline is expected to begin receiving deliveries of the craft between 2027 and 2033.

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The additional aircraft will increase Ryanair’s fleet from about 560 aircraft to 800 over the next decade, Mr O’Leary told shareholders at the group’s AGM last September, growing traffic to around 300 million passengers annually by fiscal year 2034 from 168.6 million last year.

However, some analysts have suggested that Boeing’s manufacturing operations could be impacted by the latest grounding. Investment bank Jefferies said in a note that the latest incident could slow aircraft production across its lines if manufacturing and installation processes are subject to further regulatory probes.

Notwithstanding that and the potential for unrelated production delays, market sources have indicated that the roughly two-year gap between the final Max-8 deliveries and the beginning of the Max-10 deliveries should give Ryanair some breathing room provided the remaining Max-8s are delivered this year.

[ Boeing and supplier shares fall after mid-flight Alaska Airlines accident ]

Boeing shares fell more than 8 per cent in New York on Monday before recovering later in the session. Spirit Aerosystems, which manufactured the fuselage for Boeing, fell more than 16 per cent.

Boeing chief executive Dave Calhoun on Sunday said the firm’s response to the incident was its main focus right now as regulators carry out an investigation.

The plane-maker also plans to hold a companywide webcast on safety on Tuesday to address its response. It also cancelled a leadership summit for company vice-presidents previously scheduled for Monday and Tuesday. – Additional reporting: Reuters

Ian Curran

Ian Curran

Ian Curran is a Business reporter with The Irish Times

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