Ryanair indicates order cancellations on the cards
As the "next big deal" for Ryanair rumbles on, the airline's chief executive Michael O'Leary indicated at a press briefing in Hamburg today that his airline may canel orders with Boeing as a result of the slow progress in reaching agreement on an order for 200 aircraft. In recent months Boeing hasn't exactly been falling over itself to sign on the dotted line as the pressure of thinner margins and a reduced order book take their toll. Having sold low when volumes were high the Seattle manufacturer is finding it difficult to stick to its guns in the face of O'Leary's current negotiating stance. Today Ryanair indicated once again that it may shelve its growth plans or cancel existing orders until it gets what it wants. "We're only committed to whoever sells us the lowest price airplanes", said O'Leary. If the carrier can't buy aircraft at the right price it will temporarily shelve its growth plans in favour of conserving cash. At the end of July, the Ryanair backlog of 113 aircraft (to be delivered over a three year period) represented 5% of the 737 backorder list.