JUSTIN WASTNAGE / STRASBOURG

Low-cost carrier in talks with Boeing about snapping up aircraft originally destined for troubled US airlines

Ryanair is in talks with Boeing about expanding its 737-800 orders as the US manufacturer receives deferrals from US majors. The aircraft are likely to fuel the Irish low-cost carrier's expansion into Germany, where it aims to establish a second base by 2004.

Ryanair chief executive Michael O'Leary says that it will "in principle" take the Seattle-based manufacturer up on its offer to supply white-tail aircraft originally destined for various troubled US carriers "whenever we want them". Informal talks have been held about "fast forwarding" options as well as placing more orders, he adds, but detailed discussions have not started as Boeing is in "too much chaos", with industrial action and cancelled orders, to be able to predict accurately its production schedule for 2003.

Ryanair, which operates 23 737-800s and has a further 108 on firm order along with 50 options, is to base two more of the 189 seaters at its German hub in Hahn. O'Leary says that there is a "50/50 chance" that a southern German city will be chosen as a base in the country next year. Points in France and Italy are also being eyed.

Ryanair is launching four new routes from Hahn next month to two Italian points - Bologna Forli and Rome Ciampino - Stockholm Skavsta and its first Spanish destination, Girona. Frequencies are also being increased to London Stansted, with a new twice-daily service between Stansted and Strasbourg starting on 31 October.

Ryanair's move into Spain had been delayed due to a lack of favourable ground-handling deals. It has now established its own Spanish ground-handling company and O'Leary says seven new routes in the Iberian peninsula are likely before the second quarter of 2004.

The airline will grow by around 40% this year, O'Leary predicts, although this will slow to 30% in 2004 and 25% in 2005. O'Leary says if growth continues, the airline will be carrying around 60 million passengers annually by 2008 and this would require around 250 aircraft.

Source: Flight International