‘I don’t need cash’ — but the Ryanair CEO wants Boeing to pay for 737 Max
delivery delays
CNBC 2019-05-20
https://www.cnbc.com/2019/05/20/ryanair-ceo-wants-boeing-to-pay-for-737-max-de
livery-delays.html
KEY POINTS
‧ Ryanair’s Michael O’Leary also says he is confident that Boeing’s ground
ed 737 Maxes will resume flights this summer.
‧ The 737 Max grounding caused delays in the delivery of the first of dozens
of the jets Ryanair has on order.
‧”We’re having a discussion with Boeing” about getting financial compensat
ion for the delays, O’Leary says.
Ryanair CEO Michael O’Leary told CNBC on Monday he is confident that Boeing’
s grounded 737 Maxes will resume flights this summer. But he said the groundin
g after two deadly crashes has hurt business.
Europe’s largest discount airline, which ordered 135 Max 200 models with the
option for 75 more, had been expecting to receive its first five between April
and June but now expects them to be flying by November.
For the airline, the addition of 737 Max jets had been projected to have added
1 million new passengers this summer alone.
“We’re having a discussion with Boeing” about getting financial compensatio
n for the delays, O’Leary said on “Squawk Box.” “I don’t need cash,” he
added, saying he wants movement on pricing. CFO Neil Sorahan told Reuters they
plan to discuss “modest compensation.”
Boeing’s fleet of Maxes was grounded worldwide in March after the second cras
h in five months involving the model. The crashes in Indonesia and Ethiopia ki
lled a combined 346 people. Anti-stall software is suspected in the crashes.
The Federal Aviation Administration has come under fire as people questioned t
he agency’s oversight. The FAA’s internal probe of the 737 Max approval proc
ess reportedly found senior agency officials failed to review crucial assessme
nts of the flight-control system.
The 737 Max is touted for its extra seating room and ability to cut down on fu
el usage, making the model more appealing for Ryanair, which is known for its
small seats and costly amenities.
The Max seating would make it “ridiculously roomy,” O’Leary said.
The company blamed the Max grounding and delivery delays for its profit warnin
g. Shares of Ryanair that trade in the U.S. were down 1.6% Monday morning.
O’Leary said expects the 737 Max to be back in the air at airlines across the
U.S. in June or July. “Ultimately, we have great confidence in Boeing and th
e FAA.”
— Reuters contributed to this report.