Ryanair Ends Order Talks with Boeing, Dumps Expansion Plans

WSJ:

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Ryanair Ends Talks With Boeing on 737 Order
DECEMBER 18, 2009, 3:19 A.M. ET

LONDON--Budget airline Ryanair Holdings PLC said Friday that negotiations to order up to 200 new aircraft from Boeing Co. have been terminated after the companies failed to agree on certain conditions.

"While we reached agreement with Boeing on pricing for 200 aircraft deliveries during the 2013-16 period, Boeing were unwilling to incorporate some other terms and conditions from our existing agreement into this new aircraft order," Ryanair Chief Executive Michael O'Leary said. "We have no plans to reopen discussions with Boeing or any other aircraft manufacturers."

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Funds originally set aside to purchase the planes will instead be returned to shareholders, the airline said. "Ryanair will now bring forward plans to significantly reduce growth and capital expenditures, in order to maximize cash balances for distribution to shareholders during the period 2012-2015," it said.

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