Friday, September 5, 2014

Michael O'Leary Ryan Air and Boeing All In?

It has been reported that Michael O'Leary and Ryan Air Cohorts have thrown down the gauntlet of all-in for 100 of the MAX type 737. Right now it floats as a rumor while these players meet and greet their ways through paper work for a 10 billion dollar deal.

What's at stake, cost savings per unit? The 737-800* (*200 hundred seater). Knowing O'Leary from past deals, he will want the 199 seater more precisely. Two hundred seats would require an extra flight attendant on flights. The two hundred seat class 737-800* MAX would eclipse the A320 NEO by about ten revenue seats, upping savings increases by about 5%. The A320 NEO is rating itself as a 3.5% increase for savings. Boeing is determined in this dog fight. "Never say MAX, O'Leary" has been overcome ever since ordering 175 737 NG's last time. The possibility is that he will order 100 737 MAX, and then option for another fifty at a locked price. This Airline General is not fighting Boeing, but is grabbing supplies for the bigger battle in Europe. Look for a deal by end of this quarter financials, before September 30, 2014. Never Say Never, Michael.