Ryanair to buy a further 140 aircraft

Traffic

Ryanair today is to announce firm orders for 70 new 737-800s with a option to buy 70 more.

Ryanair now has 225 ac on firm order with Boeing and options taken out on a further 193!

murphaph

Traffic wrote:

Ryanair today is to announce firm orders for 70 new 737-800s with a option to buy 70 more.

Hey Traffic, got a source for that? Cheers.

Traffic

Its all official now:

www.ryanair.com
www.boeing.com (looks v impressive with the FR a/c on the homepage)

eth0_

http://news.bbc.co.uk/1/hi/business/4293531.stm

seamus

What's the firm/options thing mean?

Traffic

The first 70 will be delivered.

The next 70: FR has basically put Boeing on notice to keep their name on the books for another 70 and therfore save capacity on the production line for them and if things continue to go well FR will convert these options into orders at a later date.

I hope this explains it, im in a rush as im out to lunch now

Victor

Traffic wrote:

The next 70: FR has basically put Boeing on notice to keep their name on the books for another 70 and therfore save capacity on the production line for them and if things continue to go well FR will convert these options into orders at a later date.

With aircraft and similar complicated manufacturing, option may include part payment for long lead items (the complicated bits like engines, electronics, etc.)

Winters

Does anyone have any guesses as to where the new bases could be?

I reckon Poland or Chech Rep will have one or two.

Capt'n Midnight

Victor wrote:

With aircraft and similar complicated manufacturing, option may include part payment for long lead items (the complicated bits like engines, electronics, etc.)

over the life of the aircraft the cost of engine replacements and parts can be as much as the airframe. In some cases - can't remmeber if it was eastern europe or china, the airline got free engines as a loss leader.

suppose you can't blame them seeing as how the dollar is the way it is , but shouldn't they be enticed to buy airbus to hely ye olde balance of payments

DubTony

Capt'n Midnight wrote:

suppose you can't blame them seeing as how the dollar is the way it is , but shouldn't they be enticed to buy airbus to hely ye olde balance of payments

I think Mr. O'Leary couldn't care less. Seems Boeings been in a bit of a slump of late. I guess somebody made somebody an offer somebody couldn't refuse.

"Would you like us to put seats on the wings and install vending machines in the back of each seat? Or maybe a few extra extra rows?"

Tony

Ronan|Raven

I welcome this development (my shares better damn well soar!)

BuffyBot

suppose you can't blame them seeing as how the dollar is the way it is , but shouldn't they be enticed to buy airbus to hely ye olde balance of payments

Ryanair has an all-Boeing fleet - it's pretty crucial to their stack em 'high, sell em cheap philosophy. A fleet of one type means no need to train pilots/crew on different aircraft, no need to have spares for different types of planes etc.. all helps save money

murphaph

Don't forget too that Boeing have many European/Asian suppliers. It's not a case of every bit of the aircraft being made with pride in the USA!

dmeehan

BuffyBot wrote:

Ryanair has an all-Boeing fleet - it's pretty crucial to their stack em 'high, sell em cheap philosophy. A fleet of one type means no need to train pilots/crew on different aircraft, no need to have spares for different types of planes etc.. all helps save money

ryanair have to train SOME pilots as they were using the older 737-200's & 737-300's which were slightly smaller (about 130 seats compared with 190-ish on the newer 737-800's. See http://www.ryanair.com/about/aboutfleet.html)

i think there is a dispute with the pilots assoc about this at the mo

Traffic

Switching between types such as the 200s to the 800 series ac isnt as time consuming or as expensive as it would be to train pilots on a totally new aircraft. Although the ac manufacturer would sometimes thrown in pilot conversion training as part of the deal.

penexpers

Capt'n Midnight wrote:

over the life of the aircraft the cost of engine replacements and parts can be as much as the airframe. In some cases - can't remmeber if it was eastern europe or china, the airline got free engines as a loss leader.

suppose you can't blame them seeing as how the dollar is the way it is , but shouldn't they be enticed to buy airbus to hely ye olde balance of payments

Boeing don't manufacture engines, they just fit them.

BuffyBot

ryanair have to train SOME pilots as they were using the older 737-200's & 737-300's which were slightly smaller (about 130 seats compared with 190-ish on the newer 737-800's. See http://www.ryanair.com/about/aboutfleet.html)

Aye, I know. But the 200/300's are being pretty quickly phased out - in favour for one type - the 800, as it's cheaper - that's the point I was trying to make

antoinolachtnai

As I understand it:

More and more, you pay for an engine on a per-hour basis nowadays. The per-hour figure prices in all the spares, rebuilds and so on that has to go into it. You might get the engine for 'free' but you're going to have to make it up in the maintenance. It's a bit like a cafe getting a free coffee machine from the coffee company.

The option is a right but not an obligation to purchase at a fixed price, at a point in the future. You generally have to pay something for an option.

It is true that the option fee might be used for some expensive parts or for tooling-up, but the company can use the money for whatever it wants. I think it is considered as revenue on the P+L (although I'm not certain). A deposit on an order, on the other hand, would be retained on the balance sheet (which is no fun).

If I remember correctly, this is how Porsche structures its orders as well. When you order a new Porsche, you effectively buy an option for a couple of years hence on a Porsche that hasn't been built yet. You may or may not be able to trade the option.

One of the reasons for doing this is that it gives the purchaser a degree of flexibility that allows them to place indicative orders. It also makes the balance sheet of the manufacturer a bit tidier, because it may avoid having to have customers included as creditors (they are owed their ordering deposits) as well as as debtors.

In terms of the discussion about 'buying European' it is worth understanding that most of the debt for buying the planes is underwritten by the US government in the form of export credit insurance.

Capt'n Midnight

penexpers wrote:

Boeing don't manufacture engines, they just fit them.

:rolleyes: The point being that choice of engines is nearly as important as plane in terms of oveall cost over the life of the plane.
Which engines have they ordered ?

murphaph wrote:

Don't forget too that Boeing have many European/Asian suppliers. It's not a case of every bit of the aircraft being made with pride in the USA!

Japan would be largest overseas supplier, also parts from Oz,
UK are also there but then again they make Airbus parts
Not a huge amount from the Eurozone really

Capt'n Midnight

found it - General Electric Engines, $0.9 Bn http://www.geae.com/aboutgeae/presscenter/cfm56/cfm56-7/cfm56-7_20050224.html

Ryanair Places $900 Million Order for CFM56-7B Engines to Power 70 Additional Boeing 737-800 Aircraft
February 24, 2005 -- EVENDALE, Ohio - Dublin, Ireland-based low-cost carrier Ryanair today announced that it has placed an order for additional CFM56-7 engines to power 70 firm, 70 option Boeing 737-800 aircraft. The firm engine order is valued at approximately $900 million at list price.

The CFM56-7 is the newest member of the CFM56 engine family produced by CFM International, a 50/50 joint company between Snecma Moteurs of France and General Electric Company. With more the 14,500 engines in service, CFM is the world's leading aircraft engine supplier.

Ryanair first became a CFM customer in 1998 with an order for 28 CFM56-7-powered 737s. In 2002, the airline followed that up with an order for 100 additional airplanes. Pending shareholder approval of the order, Ryanair will take delivery of the new aircraft between 2008 and 2012. The airline's total CFM56-7-powered 737 order book now stands at 225 firm, 193 option aircraft. By the end of 2005, Ryanair will have 100 737-800s in service, operating on routes throughout Europe from hubs in Dublin, London-Stansted, Frankfurt-Hahn, and Brussels-Charleroi.

The CFM56-7 engine is the exclusive powerplant for its 737-600/-700/-800/-900 family of aircraft and the engine provides operators with substantial benefits, including dramatically lower operating costs, better performance, higher reliability, lower noise and emissions and improved operability versus the CFM56-3 for the classic 737 series. These advantages make the CFM56-7-powered 737 ideally suited for low-cost operators such as Ryanair

murphaph

Capt'n Midnight wrote:

Not a huge amount from the Eurozone really

Snecma are french, ergo half the engines [profits] are from the Eurozone, no?

Capt'n Midnight

murphaph wrote:

Snecma are french, ergo half the engines [profits] are from the Eurozone, no?

Yeah for the engines

But I was talking about Boeing back when I was mentioning Japan etc.