Ryanair Considers Alternatives to Boeing Orders Amid Tariff Concerns - PRESS AI WORLD
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Ryanair Considers Alternatives to Boeing Orders Amid Tariff Concerns

share-iconPublished: Thursday, May 01 share-iconUpdated: Thursday, May 01 comment-icon7 months ago
Ryanair Considers Alternatives to Boeing Orders Amid Tariff Concerns

Credited from: ALJAZEERA

  • Ryanair may cancel Boeing aircraft orders if US tariffs affect pricing.
  • The airline is considering COMAC as an alternative supplier.
  • Ryanair has over 300 aircraft orders at stake amidst tariff uncertainties.
  • CEO Michael O'Leary warned of reassessing existing orders due to rising costs.
  • Airbus has stated it is sold out through the decade, complicating Ryanair's options.

Ryanair has threatened to cancel its significant orders of Boeing aircraft if the U.S. tariffs materially impact pricing. In a letter from CEO Michael O'Leary, the airline indicated it would look for alternative suppliers, including the Chinese manufacturer COMAC, if tariffs drive costs higher. Currently, Ryanair has 330 orders for Boeing 737 MAX aircraft valued at over $30 billion, with impending deliveries due by March next year, according to Channel News Asia and Reuters.

O'Leary expressed his concerns over the tariffs in response to a warning from U.S. Representative Raja Krishnamoorthi about the security implications of potentially purchasing Chinese-made aircraft. He also noted that Ryanair has not engaged with COMAC regarding purchases since around 2011. O'Leary emphasized that consideration of COMAC would only arise if its aircraft were 10% to 20% cheaper than those of Airbus, which is currently the only certified competitor in Europe, according to Al Jazeera and Reuters.

This situation highlights the escalating tensions in the aviation sector due to potential tariff impacts. The letter from O'Leary represents a sharp warning to Boeing, as the airline considers reassessing its relationships and exploring other options. However, industry experts caution that no Western airlines have yet purchased planes from COMAC, and future negotiations may be complicated by Boeing's current inability to meet deliveries given its high demand for sales, according to Channel News Asia and Al Jazeera.


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