The multibillion-pound business of buying and selling commercial aircraft was put on hold during the Covid-19 pandemic. But a rare public spat between Ryanair boss Michael O’Leary and Boeing over the Irish airline’s latest order of 737 Max 10 jets shows the high stakes game is sputtering back to life.
It is also a sign that the aircraft market is reviving as airlines return to the negotiating table to place orders for passenger jets in anticipation of the return of more passengers.
The pandemic has hit aviation hard, with Boeing saying the virus has cost the industry two years of growth. The breakdown of talks with O’Leary over a new batch of Max 10 jets shows a more confident approach from the US manufacturer, according to industry watchers.
“It is good for the industry that Boeing is showing some price discipline. The Max is a good aircraft. They shouldn’t be pressured by O’Leary into giving it away,” John Leahy, former commercial director at Airbus, told the Financial Times.
Boeing has remained reticent about the disagreement with O’Leary, only noting that it valued Ryanair’s business but had to exercise discipline. A large new order for the Max would have boosted the US group as it continues to build confidence in the aircraft after two fatal crashes.
The company has won a series of orders this year, including for 150 of the Max 10 from United Airlines. It has also reduced the backlog of Max jets that had been built but did not have buyers to about a couple of dozen, according to market watchers.
“Over the past year or so, Boeing has been going through the friends and family of the Max and offered a good price to help it clear the backlog of Maxes. All existing buyers bought some more,” said Rob Stallard, an analyst at Vertical Research Partners.
Across the industry,…