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Ryanair pulls out of Boeing deal for 200 aircraft

_46904451_-2Budget airline Ryanair has confirmed that it has ended negotiations with Boeing over the purchase of 200 new aircraft.

It added it would not be looking to buy aircraft from another supplier.

Ryanair said that it would now bring forward plans to "significantly reduce growth and capital expenditures" between 2012 and 2015.

The airline said it would still take delivery of 112 Boeing aircraft between 2010 and 2012, as previously agreed.

"We regret that our prolonged negotiations with Boeing have failed to reach a mutually acceptable conclusion," said Ryanair boss Michael O'Leary.

He said the two partners had agreed pricing on the 200 aircraft, but that Boeing was unwilling to include some other terms and conditions that his company enjoyed in existing contracts.

"We have no plans to reopen discussions with Boeing or any other aircraft manufacturers... perhaps in the future there may be other opportunities for Ryanair and Boeing to work together," Mr O'Leary added.

The airline said it would generate surplus cash between 2012 and 2015 because it would no longer be buying the aircraft, and that this would be distributed to shareholders.

In order to keep costs down, all Ryanair's aircraft are made by Boeing.

Source: BBC News

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