Ryanair discussing purchase of up to 400 new jets

Europe’s largest no-frills airline, Ryanair, has revealed that it is in preliminary talks with Airbus and Boeing regarding its need for 300-400 short-haul planes – which would constitute one of the biggest ever aircraft orders.

The carrier’s deputy chief executive and COO, Michael Cawley, commented early this week that the airline anticipated placing the order in 18 months to two years, in time to take advantage of the weakened aerospace market.

Dublin-based Ryanair is apparently looking to repeat its strategy of six years ago, when it placed an order for 100 planes and an additional 50 options, at a time that was near the lowest point in the last recession experienced by the aviation industry.

The January 2002 order from Ryanair was the largest that Boeing had received for 737s, and the budget carrier was able to negotiate one of the biggest discounts that the aircraft manufacturer ever offered. Boeing was greatly in need of orders at the time.

Airbus and Boeing have both indicated that they expect orders to fall this year to a level of approximately one-fourth of the combined peak level that was achieved in 2007, of 2,800 orders.

Currently Ryanair’s fleet comprises 181 Boeing 737-800s. By March 2012 the fleet is expected to expand to 292, based on firm orders to date. The carrier recently exercised options for 13 additional planes to be delivered in 2011 and has a balance of 10 options remaining.

www.ryanair.com