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View Full Version : Ryanair Offers Boeing 50 Aircraft 'Deal of a Lifetime'


The Guvnor
6th Nov 2001, 13:57
You have got to admire MO'Ls cheek! :D :eek: :D

From Ananova.com:

Ryanair offers 50-plane deal to Boeing


Ryanair has made Boeing a "never to be repeated" offer to buy 50 737 aircraft - at a discount.

Finance director Howard Millar says the airline aims to take advantage of the softening market for aircraft due to the economic slowdown and September 11.

It wants firm deliveries spread over the 2003-2006 period.

"Boeing are considering our proposal and they're due to come back to us in the not too distant future with (their answer to) the one chance, never to be repeated offer," he said.

Mr Millar reckons the aircraft market from a buyer's point of view is getting better every day.

Prices are falling and more aircraft, both new and second hand, are available than have been for 10-15 years.

Last August, Ryanair revealed it had cancelled options with Boeing on five new 737-800 aircraft which were scheduled for delivery between March and May 2003 because it could not agree acceptable prices.

The airline is also considering cancelling a further 12 options for 2004 and 2005 deliveries, but remains committed to the firm delivery of 13 more 800s between late 2001 and the end of 2003.

Mr Millar said if Boeing decides against its new proposal, Ryanair will purchase the 50 737s it needs to meet its fleet expansion programme from 2003 in the second hand market.

"Boeing are competing against the second hand market. We're looking for the best deal. We don't have an ideological bent that it must be new or second hand, it's what is the best value for the business."

The aircraft purchasing plan will be financed from a combination of existing cash resources of 709 million euro and debt financing.

Story filed: 12:33 Monday 5th November 2001
(c) 2001 Ananova Ltd

Another FR/low fare airline success story from today's Scotsman:

Ryanair profits buck trend
Iain Dey

NO-FRILLS airline Ryanair has posted a 30 per cent jump in first half profits, shrugging off the impact of both the foot-and-mouth crisis and the 11 September attacks on the US.

The news came as British Airways announced a 24.7 per cent fall in October traffic, and debt-laden Belgian airline Sabena announced the indefinite suspension of all its operations from Wednesday.

Ryanair reported pre-tax profits for the six months to 30 September of €102.4 million (£65.1 million) on the back of a 37 per cent increase in passenger numbers to 5.3 million.

Chief executive Michael O’Leary said: "The 11 September has highlighted significant opportunities for Ryanair. Many of our competitors are now withdrawing from routes where they previously competed with us. These include British Airways, Alitalia and Aer Lingus."

He added: "Ryanair is now being courted by many airports, some of whom would never have talked to us prior to 11 September."

O’Leary renewed his attack on European airlines, including stricken Sabena. He said: "These airlines were not grounded, as our American colleagues were, and their European operations continued without disruption.

"Whilst there was a decline in bookings in the immediate aftermath of 11 September, this was rapidly made up by Ryanair and those other airlines who lowered fares and stimulated bookings."

He added: "The notion that Sabena, having lost money for 39 of the last 40 years, can suddenly be restored to viability with one more tranche of state aid is a fantasy."

The results come a week after Ryanair’s low-cost rival easyJet reported an 81 per cent rise in full-year profits and revealed plans to raise £93 million for expansion.

The results only cover the first two weeks which followed the devastating attacks on the US, but O’Leary said he was confident second half profits will not be heavily dented by the global slump in travel, with the bulk of passengers balancing out the low revenues per head.

Ryanair’s Scottish spokesperson added: "High-fare airlines’ market share is crumbling on any route where they are going against low-fare carriers."

BA will post its interim figures tomorrow and could show a loss of up to £70 million, before exceptional gains made from the disposal of budget carrier Go.

BA said the reduction comprised a 36.2 per cent decline in premium traffic and a 22.4 per cent fall in non-premium or economy class traffic. The airline’s drop in passenger traffic was at the lower end of expectations, and had been feared to plunge by 30 per cent.

Capacity was reduced by 15 per cent in October from the same month last year, helping reduce seat factor declines through the month. A BA spokesperson said December’s traffic figures may recover some of the lost ground, as it is traditionally a stronger month, but the longer term outlook was still poor.

Ryanair is to launch a further European base soon, with Frankfurt, Pisa or Scandinavia likely to be the home of the new hub. Further services could be brought to Glasgow Prestwick following the move.

http://www.thescotsman.co.uk/pic/0611ryanb.jpg
Pic of a Canny Celt in a Kilt!

[ 06 November 2001: Message edited by: The Guvnor ]