LONDON — Budget carrier Ryanair Holdings announced Friday it has broken off negotiations with Boeing Co. to buy 200 more 737-800 short-haul aircraft after being unable to extract concessions from the manufacturer.
Ryanair chief executive Michael O'Leary said Ryanair had reached a pricing agreement for the aircraft — to be delivered from 2013 to 2016 — but Boeing was "unwilling to incorporate some other terms and conditions from our existing agreement into this new aircraft order."
O'Leary declined to specify what the points of disagreement were. He said Ryanair was willing to reopen negotiations next year, but stressed that Ryanair — Europe's fastest-growing and most profitable airline — would do a deal only if Boeing conceded to its demands.
"Instead we will focus our efforts on maintaining Ryanair's strong traffic and new route growth into 2010," O'Leary said. "We look forward to briefing shareholders in the first quarter of the New Year with a revised strategy, which will comprise much reduced capital expenditures through 2011 and 2012."
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Ryanair said it still plans to take delivery of 112 737-800s over the next three years.
Ryanair is one of Boeing's biggest customers and typically negotiates years in advance for large blocks of aircraft — purchased at heavily discounted bulk prices.
Boeing said it was disappointed that Ryanair decided not to expand its fleet. It also kept the door open for resumed negotiations in 2010.
"We worked to find a solution that met Ryanair's needs and also made good business sense for Boeing," Boeing said in a statement. "Ryanair remains a highly valued customer, today operating a fleet of over 200 737s, and we look forward to working with Ryanair on future fleet requirements."