Judging from O`Leary`s $4 Billion purchase...
posted on
Feb 24, 2005 06:31AM
Back in the fall when he had glowing reports about the digEplayer, it was likely he knew he was planning on expanding his fleet. What turned his Boeing deal was better pricing. I would venture a guess that he is negotiating a better deal with APS for a large order.
Just my ``gut`` feeling here but considering he was so HOT on the digEplayer, then went cold, we shall see. He never had bad things to say about the technology or content, but rather just the uptake on short flights. He also stated that was likely due to the fact that they offered only English content.
With his adjustments to multi-lingual content and better pricing on the shorter flights, uptake has got to improve.
However, I would guess new fleets would go with an embedded system over portables.
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Ryanair places $4B Boeing order
Irish low-cost carrier says received better pricing
By MarketWatch
LONDON (MarketWatch) -- Ryanair Holdings Plc, the Irish low-fare airline, said it has placed an order for 140 more Boeing 737-800 series aircraft worth over $4 billion.
Ryanair said the order with Chicago-based Boeing Co. (BA: news, chart, profile) is for 70 firm aircraft and 70 options, which are due for delivery primarily between 2008 and 2012.
This brings the total Ryanair order book with Boeing up to 225 firm aircraft and 193 options.
Boeing shares closed 1.1 percent higher to $52.72 on Wednesday.
Ryanair said the 70 new aircraft will result in the creation of more than 2,500 new ``highly paid`` jobs in Ryanair, principally for pilots, cabin crew and engineering staff.
Half of these jobs will be generated at the airlines existing 12 European bases, with the remainder at the 10 or more new bases to be developed over the next seven years, it said.
Shares in the Dublin, Ireland-based carrier (RYAAY: news, chart, profile) (UK:RYA: news, chart, profile) jumped 4.6 percent in early London trade.
Ryanair sees falling costs
The order was the result of a Ryanair-Boeing agreement on improved pricing from 2005 onward, the carrier said. ``As a result of this agreement, Ryanair will now enjoy the lowest per seat operating cost in Europe,`` Ryanair said in a statement.
``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,`` it added.
The airline anticipates that after this order is delivered, it will carry in excess of 70 million passengers per year, making it Europe`s largest airline. In its current fiscal year to March 2006, the fast-growing airline expects to carry 34 million passengers.
Ryanair also said the deal, together with the 100 new Boeing 737-800s it will take delivery of by the end of the year, will allow Ryanair to maintain its planned double digit growth during the latter years of this decade.``