Ryanair terminated talks with Boeing for an order for 200 737-800s, ending a highly publicized negotiating tactic by the ever-talkative Ryanair CEO Michael O’Leary.
The Financial Times has this interesting take. (Free registration may be required.)
Bloomberg has this report.
Our take: Although O’Leary says this means he will halt growth and potentially return dividends to shareholders, we note that in the Company’s statement, O’Leary talks about ending negotiations for the end of the year. We also note that the FT regards this as no more than brinkmanship.
Here is the key extract from the Ryanair statement:
Ryanair, today (Fri 18th Dec 09) confirmed that its quarterly Board meeting yesterday determined that its negotiations with Boeing for an order of up to 200 new B737-800 series aircraft for delivery during the period 2013-2016 cannot be successfully concluded prior to the end of the calendar year and accordingly the Board of Ryanair have confirmed that its negotiations with Boeing have terminated unsuccessfully. (Emphasis added.)
This means, in our view, that negotiations could well resume after the first of the year–and likely will.
We also noted that Ryanair said no negotiations will be held with other manufacturers. Airbus has been the subject of much speculation, with O’Leary hinting he was talking with Airbus but Airbus denying such. Airbus feels it has been used only as a stalking horse in the past.
O’Leary said the current orders will be unaffected.
O’Leary likes to negotiate in the press, just as do Emirates and Qantas.
We don’t think for a minute this potential order is over.