London, Dec 18 (PRINTWORDS NEWS) -
In a new development that has created a buzz in the Aviation sector, Ryanair has walked out of the agreement with Boeing Co. according to which the latter was supposed to deliver 200 aircrafts. The Largest low cost airline of Europe said in a statement that the agreement with Boeing failed and it has no immediate plans to approach the US Company again. Neither does it want to strike a deal with other aircraft manufacturers.
A representative of the Dublin based company said that Ryanair has strategies to cut down on growth for a while and capital spending. According to Ryanair, talks with Boeing failed not because of any pricing disputes. It did not accept some terms and conditions that Boeing had set. However, Michael O’Leary the CEO of the carrier did not rule out the possibility of striking any deal with Boeing in future.
Boeing agreed to supply Ryanair with 200 latest 737-800 model during a three year period starting from 2013. The cancellation of these 200 aircrafts will have no impact on the procurement of another 112 planes slated to be delivered before 2013. In fact 48 aircrafts will be supplied by Boeing to the carrier in 2010 itself. The company plans to focus more on shareholders in the coming future. The announcement comes within months of its declaration that it will overtake UK’s largest carrier British Airways in domestic traffic volume.
Ryanair also has aggressive plans to relocate its routes from certain airports to maintain its traffic and sustain growth. It is likely to change some routes from the Shannon Airport from 2010. Stephen McNamara who is the head of communications at Ryanair said that Irish governments’ tourist tax policy is taking a toll in the tourism in the country. He further said that Shannon airport is likely to suffer major decline in traffic in near future owing to the imposition of steep charges on fliers. The company also revealed that it will open new operation at Faro and Malaga.
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