Ryanair, Europe's biggest discount airline, said it may order as many as 200 aircraft to add capacity and take advantage of an anticipated decline in aircraft values over coming months.
Ryanair has been talking with Boeing and is about to start discussions with Airbus SAS, chief executive officer Michael O'Leary said today in an interview in London. Orders would be placed as options beyond 2012, when planes the airline has already agreed to buy will have been delivered.
"I think aircraft values are going to collapse this winter," Mr O'Leary said. "I think Boeing and Airbus order books are going to be under stress as airlines go bankrupt." The carrier currently has an all-Boeing fleet.
Ryanair said last month it would ground planes at Dublin and London Stansted airports to help trim costs this winter as fuel prices and slowing economies weigh on demand for travel.
While the carrier may this year suffer a first annual loss since going public in 1997, O'Leary says it will ultimately benefit from the slowdown as low-cost opponents are eliminated.
The chief executive said December 11th that Ryanair would react to any slump in air travel by buying planes. Current commitments mean the fleet will double to 260 jetliners by 2012.
He added on February 4th that the next order would be for 150 to 200 aircraft. Ryanair's passenger count rose 19 per cent last month compared with a year earlier as it added routes and aircraft, it said on August 5th.
Bloomberg