Ryanair may be forced to carry fewer passengers next year than originally planned due to delays in Boeing’s delivery of new aircraft.
Michael O’Leary is the chief executive officer of Ryanair. The low-cost carrier, which is Boeing’s biggest customer in Europe and due to receive 30 Boeing 737 airplanes between March and June, next year, to help meet its growth targets. However, he now questions how many will arrive on time.
Boeing’s biggest union struck, halting production at the company’s main factories in Washington State. This has deepened a crisis that was caused by an important safety issue with a Boeing plane in January. Boeing responded with a plan to cut 17,000 jobs and announced on Tuesday a 35 billion strategy for bolstering its finances.
Ryanair wants to double its passenger numbers by 2034 from 200 million to 300 million, backed by Boeing 737 aircraft.
The frustration of carriers is increasing due to the delays in Boeing and Airbus.
We were supposed to receive 20 deliveries by the end of December. It’s okay if they arrive in January or February. They’ll be ready for summer next year. O’Leary asked: “The big question for Ryanair is that we’re due to receive 30 aircraft between March, April and May of next year. How many will we get?”
“I don’t believe we’ll be able to take all 30 aircraft next year.”
He said: “We don’t want to repeat this next year.” We were prepared, crewed the 50 aircraft and only received 30. We have taken a significant cost penalty this year”, he said.
O’Leary will meet Kelly Ortberg, Boeing’s CEO, to discuss these problems.
Sir Tim Clark, CEO of Emirates, a Middle Eastern airline, said previously that he would “have a serious discussion” with Boeing regarding delivery delays.
O’Leary complained about capacity limitations at a conference for industry leaders in Brussels, on Wednesday.
Willie Walsh (former boss of IAG and former director general of IATA) told the Institute of International and European Affairs, a think tank, that the situation was “extremely frustrating” for airline executives and had a significant impact.
Boeing 777 in production at Everett Washington
“It will be a problem for many years,” he said. It seems that the airline chief executives are saying that it doesn’t seem to be getting worse.
European airlines also urge Brussels to do more in order to equalize the playing field between Chinese carriers who are able fly over Russia and save costs. Several carriers, including Lufthansa and BA, have recently canceled their routes to Beijing.
“We, as IATA, believe that the Russian airspace is open to everyone. This is a political matter. This is not a safety or security issue. I understand why airlines want it, but there are no specific tools available to deal with this,” Walsh said.
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