Ryanair CEO Michael O’Leary expressed confidence in Boeing’s ability to increase 737 MAX production to 38 planes per month this summer, with a further increase to 42 per month anticipated following approval from the U.S. Federal Aviation Administration (FAA). This statement follows O’Leary’s meetings with Boeing executives in Seattle earlier this month. Ryanair, a major 737 MAX customer, expects delivery of its remaining 29 aircraft on order between August and November 2024.
Table Content:
Production Ramp-Up Crucial for Deliveries
O’Leary emphasized the importance of Boeing achieving the targeted production rate of 38 planes per month by the end of summer. Securing FAA permission to further elevate production to 42 per month is also critical for timely delivery. This updated delivery timeline clarifies a previous projection extending to March 2026, as stated in Ryanair’s recent quarterly results.
FAA Approval and Political Landscape
The FAA imposed a production cap on the 737 MAX in January 2024 due to safety concerns arising from a mid-air panel blowout. Boeing CEO Kelly Ortberg recently confirmed the company’s aim to reach a production rate of 38 planes per month and secure FAA approval for a subsequent increase in the second half of the year.
Optimism Under New Administration
O’Leary expressed optimism regarding the potential for a more supportive regulatory environment under a new U.S. presidential administration. He anticipates a pro-business stance that would facilitate Boeing’s recovery and production ramp-up, contrasting this with his perception of the previous administration’s approach.
Future Collaboration and Outlook
Boeing CEO Kelly Ortberg is scheduled to visit Ryanair in Dublin in February for further discussions. O’Leary expressed hope for productive meetings, lightheartedly referencing the proximity to Valentine’s Day. He conveyed a strong sense of optimism regarding Boeing’s ongoing recovery and its potential for acceleration.
Conclusion
Ryanair’s confidence in Boeing’s production capabilities underscores a critical juncture for both companies. The successful ramp-up of 737 MAX production is essential for fulfilling Ryanair’s order backlog and supporting its growth plans. The anticipated regulatory environment and ongoing collaboration between the two companies suggest a positive outlook for the future of the 737 MAX program.
