Ryanair is to announce a jet design agreement with a Chinese manufacturer on Tuesday, firing a warning shot to Boeing that it cannot expect another multibillion-pound aircraft order from the low-cost carrier.
Europe's biggest short-haul airline has agreed terms with Commercial Aircraft Corporation of China (Comac) to help design an aircraft that could rival Ryanair's fleet aircraft, the Boeing 737.
The Dublin-based carrier broke off talks with Boeing over a new order last year and has been openly planning to consider another manufacturer if it expands further after 2013.
Ryanair is keen to acquire an aircraft with up to 200 seats, compared with 189 in the Boeing 737. Eleven more passengers paying an average fare of 43 (£38) would boost Ryanair's already impressive profit margins although going above 200 would require an additional crew member and push up flight costs.
The low-cost airline has 272 aircraft and is due to receive about 30 more over the next two years under a previous Boeing order.
Ryanair is interested in Comac's planned C919 aircraft, which is being developed to rival the Boeing 737 and the Airbus A320, the dominant players in the commercial aircraft market.
However, the Chinese jet is not expected to be available until 2016 at the earliest and it is understood that the memorandum of understanding does not include a commitment to acquire aircraft.
This is common in similar agreements between airlines and mainstream manufacturers where carriers provide advice on issues such as cabin layout. British Airways announced a similar agreement with Comac last year and industry observers believe that Ryanair, never shy of negotiating in public, could be using the Comac tie-up to strong-arm Boeing.
Ryanair snubs Boeing by announcing jet design pact with China's Comac | Business | The Guardian
Europe's biggest short-haul airline has agreed terms with Commercial Aircraft Corporation of China (Comac) to help design an aircraft that could rival Ryanair's fleet aircraft, the Boeing 737.
The Dublin-based carrier broke off talks with Boeing over a new order last year and has been openly planning to consider another manufacturer if it expands further after 2013.
Ryanair is keen to acquire an aircraft with up to 200 seats, compared with 189 in the Boeing 737. Eleven more passengers paying an average fare of 43 (£38) would boost Ryanair's already impressive profit margins although going above 200 would require an additional crew member and push up flight costs.
The low-cost airline has 272 aircraft and is due to receive about 30 more over the next two years under a previous Boeing order.
Ryanair is interested in Comac's planned C919 aircraft, which is being developed to rival the Boeing 737 and the Airbus A320, the dominant players in the commercial aircraft market.
However, the Chinese jet is not expected to be available until 2016 at the earliest and it is understood that the memorandum of understanding does not include a commitment to acquire aircraft.
This is common in similar agreements between airlines and mainstream manufacturers where carriers provide advice on issues such as cabin layout. British Airways announced a similar agreement with Comac last year and industry observers believe that Ryanair, never shy of negotiating in public, could be using the Comac tie-up to strong-arm Boeing.
Ryanair snubs Boeing by announcing jet design pact with China's Comac | Business | The Guardian
