Iver
7th Jul 2011, 04:13
Not sure if this has already been covered extensively. See the exceprt and link below. Pretty remarkable but not entirely surprising IF it happens. O'Leary is cheap and he needs cheap aeroplanes for his operating model (low fares require low costs). Still, I think this is basically a negotiating ploy to get Boeing to lower its prices even more... It would be a HUGE win for COMAC (Ryanair would be a "dream" customer for them and it would probably lead to more LCC orders worldwide) and you can be assured that Ryanair would require significant performance guarantees and major onsite support. Read this excerpt from a recent article below and see the article link at the bottom:
Competition from China
The biggest threat to the 737s rein may not be from Airbus, but from China. Core customer Ryanair, one of the big European discount airlines, announced in February that it was in discussions with Commercial Aircraft Corporation of China, COMAC, to acquire 200 to 400 new aircraft. COMAC is a brand new entrant in the market and has the potential to break the Boeing/Airbus duopoly. Ryan Air currently operates an all Boeing fleet made up of 272 737s and has no outstanding orders for new jets after it receives its last 737 from Boeing in 2012. The airline broke off negotiations with Airbus and Boeing in 2009 because it said it was unhappy with their pricing.
Ryanair, known to be frugal, needs an aircraft that fits its deep discount image. For example, the airline's colorful chief executive, Michael O'Leary, is upset with Boeing for not making an effective locking system for its onboard bathrooms that would allow the airline to start charging its customers to use the toilet. So it isn't surprising that he would be in negotiations with the Chinese to produce a cheap 200-seat airplane. Ryanair has yet to make a decision on whether or not it will abandon Boeing for COMAC, but it looks like it might just take a chance. Other discount airlines, looking to replicate Ryanair's success, may be persuaded to go with COMAC instead of the Boeing 737 when building up their fleets.
Notwithstanding Ryanair's possible defection, Boeing and Airbus seem unfazed by the COMAC threat. After all, it will take years, possibly decades, for the Chinese to become a credible threat in the commercial aviation space. So far, only Chinese airlines have ordered COMAC's prototype c919 jet, with the first jet set to go into service in 2016, five years from now.
Here's the link to the article:
Boeing vs. Airbus: The fight for flight intensifies - Jul. 5, 2011 (http://money.cnn.com/2011/07/01/news/companies/boeing_airbus_aircraft.fortune/index.htm)
Here's a link reviewing the aircraft mock-up (with pictures):
China unveils C919 jet to rival Boeing (http://www.aftasources.com/news/show-451.html)
Competition from China
The biggest threat to the 737s rein may not be from Airbus, but from China. Core customer Ryanair, one of the big European discount airlines, announced in February that it was in discussions with Commercial Aircraft Corporation of China, COMAC, to acquire 200 to 400 new aircraft. COMAC is a brand new entrant in the market and has the potential to break the Boeing/Airbus duopoly. Ryan Air currently operates an all Boeing fleet made up of 272 737s and has no outstanding orders for new jets after it receives its last 737 from Boeing in 2012. The airline broke off negotiations with Airbus and Boeing in 2009 because it said it was unhappy with their pricing.
Ryanair, known to be frugal, needs an aircraft that fits its deep discount image. For example, the airline's colorful chief executive, Michael O'Leary, is upset with Boeing for not making an effective locking system for its onboard bathrooms that would allow the airline to start charging its customers to use the toilet. So it isn't surprising that he would be in negotiations with the Chinese to produce a cheap 200-seat airplane. Ryanair has yet to make a decision on whether or not it will abandon Boeing for COMAC, but it looks like it might just take a chance. Other discount airlines, looking to replicate Ryanair's success, may be persuaded to go with COMAC instead of the Boeing 737 when building up their fleets.
Notwithstanding Ryanair's possible defection, Boeing and Airbus seem unfazed by the COMAC threat. After all, it will take years, possibly decades, for the Chinese to become a credible threat in the commercial aviation space. So far, only Chinese airlines have ordered COMAC's prototype c919 jet, with the first jet set to go into service in 2016, five years from now.
Here's the link to the article:
Boeing vs. Airbus: The fight for flight intensifies - Jul. 5, 2011 (http://money.cnn.com/2011/07/01/news/companies/boeing_airbus_aircraft.fortune/index.htm)
Here's a link reviewing the aircraft mock-up (with pictures):
China unveils C919 jet to rival Boeing (http://www.aftasources.com/news/show-451.html)