“Ryanair Holdings Plc (RYA) agreed to buy 175 Boeing Co. (BA) 737 jets worth $15.6 billion at list price to offer discount flights in markets vacated by full-service rivals and said it may opt to add 200 more by the end of the year.
Ryanair will initially take the existing 737-800 version of the single-aisle aircraft, and is evaluating the re-engined Max model for the follow-on requirement, Europe’s biggest low-cost carrier said today in a statement.
Chief Executive Officer Michael O’Leary last placed a major order in 2005 and has been contemplating a new deal for more than three years with deliveries from Boeing having ended in December. The carrier got a heavy discount on the last purchase and the new accord has similar terms, he said in an interview.
“We needed this order to fill the gaps left by the likes of Iberia in Spain and SAS in Scandinavia as the network airlines concentrate on long-haul and feeder services,” the CEO said by telephone. “We could be looking at 100 or 200 more when we decide on the Max, depending on how much the market opens up.”
Ryanair rose as much as 1.9 percent and was trading 1.7 percent higher at 5.90 euros as of 10:15 a.m. in Dublin, where the company is based. The stock has advanced 25 percent in 2013.