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Ryanair boss Michael O'Leary: Call for a change in management

Photo: EVELYN HOCKSTEIN / REUTERS

Ryanair is the first airline in Europe to warn of the impact on day-to-day business as a result of the crisis at Boeing.

Ryanair will receive even fewer Boeing aircraft by the end of June than previously expected, said CEO Michael O'Leary.

This could prompt the budget airline to cut its summer schedule during the busiest time of the year.

And passengers were threatened with higher ticket prices.

Boeing is under pressure from regulators, airlines and US politicians after an Alaska Airlines Boeing 737 Max 9 lost a fuselage part while flying over the US state of Oregon on January 5th.

The US Federal Aviation Administration (FAA) then ordered all aircraft of the affected type to be grounded and inspected.

Ryanair was scheduled to receive 57 Boeing Max 8200 aircraft by the end of April.

But just over a week ago, Boeing informed the airline that it would receive around 50 aircraft by the end of June, O'Leary reported.

But even that seems questionable.

"We don't really know how many planes we're going to get from Boeing," O'Leary told reporters.

»We're pretty sure we'll get 30 to 40.

We're reasonably confident we'll get between 40 and 45.

And now we're far less confident that we'll get between 45 and 50."

The delayed deliveries mean Ryanair may have to cancel some flights from its summer schedule, O'Leary said.

"If we only get 40 flights, we will have to announce some minor reductions in the flight schedule by the end of March," he said.

That means Ryanair is likely to carry just 200 million passengers in the financial year starting in April, instead of the previously forecast 205 million.

Further capacity restrictions could leave the airline, known for its low ticket prices to summer hotspots such as Malaga and Sicily, less competitive with low-cost rivals such as easyJet.

Boeing confirmed to Reuters that it had informed some airlines that deliveries could be delayed.

The company wants to ensure that the aircraft meet all regulatory standards before they are delivered to customers.

"We deeply regret the impact this has on our valued customer Ryanair," said Boeing.

"We are working to address their concerns and implement a comprehensive plan to improve 737 quality and delivery performance."

O'Leary sent a far less polished message to Boeing.

There's a "shitshow" going on at the company's headquarters in Seattle, said O'Leary, repeating his call for a change in management.

Boeing keeps making optimistic promises that are then cashed in shortly afterwards.

“Right now we’re focused on getting the damn planes.”

Boeing recently parted ways with a leading aircraft manager.

Ed Clark, the head of the Boeing 737 Max program, which includes the Max 9, had to leave.

Katie Ringgold, who was previously responsible for deliveries, will be her successor.

If United Airlines or other airlines withdraw their orders for Boeing's Max 737-10, Ryanair would be happy to take over the aircraft, said O'Leary - as long as the price was right.

“That would give us some growth in 2027 or 2028.”

O'Leary said he would pass on some of the costs of the delivery delays to customers.

Prices will rise by around five to ten percent this summer, and average flight prices could rise by ten to 15 euros over the next five years.

The airline is discussing possible compensation with Boeing to offset the losses.

The delays were inexcusable, O'Leary said.

He is counting on moderate compensation from Boeing.

"Right now we're focused on getting the damn planes."

mmq/Reuters