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24/02/2005
Ryanair's $4bn investment promises 2,500 new jobs
Irish-owned low cost airline Ryanair has announced placing an order for a 140 Boeing 737-800 series aircraft.
The $4 billion investment involves a firm order for 70 new aircraft and will result in the eventual creation of more than 2,500 jobs, principally for pilots, cabin crew and engineering staff. Half of these jobs will be generated at the airline's existing 12 European bases, with the remainder at the 10 or more new bases that Ryanair plan to develop over the next seven years.
Ryanair said that a firm order had been placed for 70 aircraft and that the company has an option on 70 further aircraft.
While subject to shareholder approval at an EGM, this agreement would make Ryanair Europe's largest airline based on projected passenger traffic.
Announcing this agreement in London this morning, Ryanair's Chairman, David Bonderman said: "The Boeing 737-800 series aircraft is the most efficient narrowbody shorthaul aircraft in the world. Since its introduction into the Ryanair fleet in March 1999 it has transformed our technical reliability, making Ryanair the number one on-time major airline in Europe.
"At the same time, the 737-800 has significantly reduced our unit operating costs and allowed us to reduce air fares each year for the last five years. With this new order and new pricing in place, Ryanair expects that unit operating costs (excluding fuel) will continue to fall each year for the next five years. This will enable Ryanair to offer even lower fares and underpin our growth strategy as we plan to double traffic from 34 million passengers in 2005/06 to over 70 million passengers in 2011/12.
"Ryanair's partnership with Boeing has been central to our successful growth as the lowest fare and lowest cost airline in Europe. Today's order for 140 additional aircraft (70 firm units) gives Ryanair access to lower aircraft costs, which in turn reduces operating costs and reinforces our determination to drive air fares in Europe even lower".
This increased $4 billion aircraft order is the result of a Ryanair-Boeing agreement on improved pricing from 2005 onward. The company said that this investment will enable "planned double-digit growth during the latter years of this decade" to be maintained.
The agreement reinforces the Ryanair-Boeing partnership as it delivers the lowest per seat aircraft cost in Europe.
The transaction also includes agreement on winglet modifications to Ryanair's entire fleet (delivering a 2% reduction in fuel consumption) and improved support terms.
As a result of the agreement announced today, Ryanair expects to be able to offer the lowest per seat operating cost in Europe.
(SP/MB)
The $4 billion investment involves a firm order for 70 new aircraft and will result in the eventual creation of more than 2,500 jobs, principally for pilots, cabin crew and engineering staff. Half of these jobs will be generated at the airline's existing 12 European bases, with the remainder at the 10 or more new bases that Ryanair plan to develop over the next seven years.
Ryanair said that a firm order had been placed for 70 aircraft and that the company has an option on 70 further aircraft.
While subject to shareholder approval at an EGM, this agreement would make Ryanair Europe's largest airline based on projected passenger traffic.
Announcing this agreement in London this morning, Ryanair's Chairman, David Bonderman said: "The Boeing 737-800 series aircraft is the most efficient narrowbody shorthaul aircraft in the world. Since its introduction into the Ryanair fleet in March 1999 it has transformed our technical reliability, making Ryanair the number one on-time major airline in Europe.
"At the same time, the 737-800 has significantly reduced our unit operating costs and allowed us to reduce air fares each year for the last five years. With this new order and new pricing in place, Ryanair expects that unit operating costs (excluding fuel) will continue to fall each year for the next five years. This will enable Ryanair to offer even lower fares and underpin our growth strategy as we plan to double traffic from 34 million passengers in 2005/06 to over 70 million passengers in 2011/12.
"Ryanair's partnership with Boeing has been central to our successful growth as the lowest fare and lowest cost airline in Europe. Today's order for 140 additional aircraft (70 firm units) gives Ryanair access to lower aircraft costs, which in turn reduces operating costs and reinforces our determination to drive air fares in Europe even lower".
This increased $4 billion aircraft order is the result of a Ryanair-Boeing agreement on improved pricing from 2005 onward. The company said that this investment will enable "planned double-digit growth during the latter years of this decade" to be maintained.
The agreement reinforces the Ryanair-Boeing partnership as it delivers the lowest per seat aircraft cost in Europe.
The transaction also includes agreement on winglet modifications to Ryanair's entire fleet (delivering a 2% reduction in fuel consumption) and improved support terms.
As a result of the agreement announced today, Ryanair expects to be able to offer the lowest per seat operating cost in Europe.
(SP/MB)
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