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Ryanair CEO freezes 737 Max payments to Boeing

It was reported that Ryanair has frozen payments to Boeing while it waits for the 737 MAX to obtain approval for commercial passenger service. The information comes from Bloomberg as the airline’s Chief Executive Officer Michael O’Leary was addressing the audience of Ryanair’s annual shareholders meeting. The airline has 135 of the Boeing aircraft type on order. At list prices this is worth over US$16 billion.

In its seventh month of being grounded, the Boeing 737 MAX has been a critical piece in the schedules of airlines around the world – Ryanair is no exception. O’Leary is clearly hoping for the grounding to lift in the next three months.

For employees, this impact is far more personal; more delays could see additional job cuts, including those involved in piloting and maintaining aircraft and looking after customers.

The potential job cut figure currently sits around 500 to 700 people, with O’Leary noting that the airline has 500 surplus pilots.

Ryanair has 135 737 MAX’s on order, with a list price value of $16 billion. The dense version of the 737 MAX 8, dubbed the 737 MAX 8 200, was scheduled to be delivered earlier this year, however certification delays and the grounding situation has got in the way.

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