Ryanair abanons Boeing aircraft purchase

So this was probably the reason why the stock dropped about a dollar today.  Ryanair, Europe's largest low-cost carrier, announced that they have abandoned plans to purchase up to 200 Boeing 737-800 aircraft for delivery from 2013 through 2016.  Although the two sides were able to come to an agreement on pricing, talks collapsed when an agreement couldn't be reached on unspecified "terms and conditions."  I'm really not too surprised by this since I had posted earlier about Ryanair's CEO Michael O'Leary having publicly threatened to abandon talks unless he got his way with Boeing.  But I guess Boeing refused to blink.  The money that Ryanair had allocated for this aircraft purchase will instead go back to investors.  Although it sucks to have lost a potential 200-plane order, there is still some potential for negotiations to resume between the two sides and that a deal can be reached.  Ryanair has made it no secret that it wants to continue expanding, which means at some point in the future it will need more additional aircraft.  Whether it buys again from Boeing, or goes elsewhere, remains to be seen.  This announcement does not affect an existing order of 112 737's that will be delivered over the next 3 years.

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