140more Boeing 737-800's
Ryanair Holdings PLC
24 February 2005
RYANAIR ORDERS 140 MORE BOEING 737-800s
70 FIRM AIRCRAFT VALUED AT OVER $4 BILLION
2,500 NEW JOBS TO BE CREATED IN RYANAIR
Ryanair, Europe's lowest cost airline this morning (Thursday, 24th February
2005) placed an order for a further 140 Boeing 737-800 series aircraft. The
order comprises of 70 firm aircraft valued at over $4 billion and 70 options.
This agreement (which is subject to shareholder approval at an EGM) brings the
total Ryanair/Boeing order book up to 225 firm aircraft and 193 options.
At the end of 2005, Ryanair will have taken delivery of about 100 new Boeing
737-800's (from the original 155 firm order) and these 70 new firm orders, which
are due for delivery primarily between 2008 and 2012 will allow Ryanair to
maintain its planned double digit growth during the latter years of this decade.
When all these firm aircraft have been delivered, Ryanair (which in the fiscal
year to March 2006 expects to carry 34m. passengers) anticipates that it will
carry in excess of 70m. passengers p.a., making it Europe's largest airline.
These 70 new aircraft will result in the creation of more than 2,500 new highly
paid jobs in Ryanair principally for pilots, cabin crew and engineering people.
Half of these jobs will be generated at the airlines existing 12 European bases,
with the remainder at the 10 or more new bases which will be developed by
Ryanair over the next seven years.
This increased $4 billion aircraft order is the result of a Ryanair-Boeing
agreement on improved pricing from 2005 onward. The agreement reinforces the
Ryanair-Boeing partnership as it delivers the lowest per seat aircraft cost in
Europe. The transaction also includes agreement on winglet modifications to
Ryanair's entire fleet (delivering a 2% reduction in fuel consumption) and
improved support terms. As a result of this agreement, Ryanair will now enjoy
the lowest per seat operating cost in Europe, and this will enable Ryanair to
widen its lowest cost/lowest fare leadership over all other European airlines.
Announcing this agreement in London this morning, Ryanair's Chairman, David
Bonderman said:
'The Boeing 737-800 series aircraft is the most efficient narrowbody
shorthaul aircraft in the world. Since its introduction into the Ryanair
fleet in March 1999 it has transformed our technical reliability, making
Ryanair the No. 1 on time major airline in Europe. At the same time, the
737-800 has significantly reduced our unit operating costs and allowed
us to reduce air fares each year for the last five years. With this new
order and new pricing in place, Ryanair expects that unit operating
costs (excluding fuel) will continue to fall each year for the next five
years. This will enable Ryanair to offer even lower fares and underpin
our growth strategy as we plan to double traffic from 34m. passengers in
2005/06 to over 70m. passengers in 2011/12.
'Ryanair's partnership with Boeing has been central to our successful
growth as the lowest fare and lowest cost airline in Europe. Today's
order for 140 additional aircraft (70 firm units) gives Ryanair access
to lower aircraft costs, which in turn reduces operating costs and
reinforces our determination to drive air fares in Europe even lower.
'Ryanair is presently Europe's largest low fares airline, and thanks to
our successful partnership with Boeing, we intend to become Europe's
largest airline (by passenger traffic). We will do so by using the best
shorthaul aircraft in the business - the Boeing 737-800, by offering
even lower fares to our passengers and by creating over 2,500 new highly
paid jobs in existing and new bases all over Europe'.
Ends. Thursday, 24th February
2005
For further information Peter Sherrard Pauline McAlester
please contact: Ryanair Murray Consultant
Tel: 353-1-8121212 Tel: 353-1-4980300
Note to Editors:
Ryanair is Europe's No. 1 low fares airline with 220 low fare routes across 19
countries. The airline has 12 European bases and by the end of 2005 will operate
an entire fleet of 96 new Boeing 737-800 aircraft with firm orders for a further
129, which will be delivered over the following 6 years. Ryanair currently
employs a team of 2,600 people and will carry in excess of 34 million scheduled
passengers in the coming financial year.
This information is provided by RNS
The company news service from the London Stock Exchange
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