Ryanair issues ultimatum to Boeing

Ryanair Chief Executive Michael O'Leary took a hard line against Boeing with regards to a potential follow-on order (around 200 737 aircraft for delivery beginning 2013-2016).  Here's the bottom line: if a deal can't be reached by the end of November, then Ryanair will terminate it's long-running relationship with Boeing.  Ryanair is known for its cutthroat tactics: after 9/11 and the subsequent rapid decline of the aviation industry, Ryanair was able to wring out huge concessions from a desperate Boeing for 737-800 purchases.  Normally when it comes to bullies like O'Leary, I would have personally introduced him to both my fists and told him to go 'eff himself, but that's not how it works in the business world.  If Ryanair ultimately decides to go elsewhere, then they would need to make large investments in re-training and certifying their pilots and mechanics to fly and maintain a new type of aircraft; currently Ryanair only flies 737-800's.  And from Boeing's perspective, how much business sense does it make to sell aircraft for far far less than the cost of making them?  Is it more important to rack up quick sales numbers with little to no profit, or wait patiently to turn a decent profit from those sales?  I'm not an economics major, but it'll be interesting to see if Boeing caves in to Ryanair's demands, or stands firm.

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Will this be the last time Ryanair flies a 737?

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