Ryanair Might Stop Growth Due to No Planes
Ryanair has over 200 Boeing 737-800’s, which allows them to save on maintenance, training, parts, etc. However, this also lessens their ability to negotiate effectively if Boeing knows Ryanair is not likely to start buying other aircraft types.
Ryanair is one of Europe’s biggest airlines and they feel they can keep growing. They are so confident about their ability to grow, they are looking to purchase another 200 airplanes and they say Boeing is not working hard enough to make a good deal.
“We see no point in continuing to grow rapidly in a declining yield environment, where our main aircraft partner is unwilling to play its part in our cost reduction programme,” Michael O’Leary, the famous CEO for Ryanair, said about the situation.
O’Leary says they have cash on hand and if Boeing doesn’t want it, they will just pay their stockholders in dividends instead (why not put the money to providing some actual customer service? Nah’¦).
This seems it might just be O’Leary doing what he does, trying to squeeze every last dime out of Boeing. I find it hard to believe that Ryanair would move to having two aircraft types or willing to shell out the money to convert their entire fleet into one. My bet is either they really don’t want to buy 200 planes or if they do, they will all be Boeing 737’s.
Take a look at the winglet and tail. This is a new Boeing 737-800 for Ryanair.
Ryanair has over 200 Boeing 737-800’s, which allows them to save on maintenance, training, parts, etc. However, this also lessens their ability to negotiate effectively if Boeing knows Ryanair is not likely to buy other aircraft types.
The airline is one of Europe’s biggest and they feel they can easily keep growing. They are so confident about their ability to grow, they are looking to purchase another 200 airplanes, but they say Boeing is not working hard enough to make a deal.
“We see no point in continuing to grow rapidly in a declining yield environment, where our main aircraft partner is unwilling to play its part in our cost reduction programme,” Michael O’Leary, the famous CEO for Ryanair, said about the situation.
O’Leary says they have cash on hand and if Boeing doesn’t want it, they will just pay their stockholders in dividends instead (why not put the money to providing some actual customer service? Nah’¦).
This seems it might just be O’Leary doing what he does, trying to squeeze every last dime out of Boeing. I find it hard to believe that Ryanair would move to having two aircraft types or willing to shell out the money to convert their entire fleet into one. My bet is either they really don’t want to buy 200 planes or if they do, they will all be Boeing 737’s.
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Source: Airwise Image: drewski2112
JetAmerica's Boeing 737-800
Yes, a new airline is starting up, but they have a lot of help. The airline will be based out of Newark, NJ and have most of their flights go to smaller mid-sized cities which have seen a drop in traffic from other airlines.
Some of the airports are willing to shell out a lot of money to make JetAmerica work. Lansing, MI, South Bend, ID Melbourne, FL, and Toledo, OH are paying JetAmerica with $1.4 million in grants, almost $900,000 in waived fees, and over $1 million in marketing and advertising in the first year.
John Weikle, chief executive or JetAmerica, feels this extra money will help protect the new airline from fuel price spikes which mostly caused the bankruptcy of Skybus — an airline JetAmerica is modelling themselves after.
Prices will start at $9 per seat (for the first 19 seats) and then up to $199. The standards of paying for checked bags, food, drink, etc will apply as well to the new airline.
JetAmerica will start with one leased Boeing 737-800, but hope to have four flying by July of next year.
Source: MSNBC Image: JetAmerica.com