Boeing lands crucial max deal from Ryanair as grounding ends

Boeing Co. sealed a landmark order for its 737 Max jet from Ryanair Holdings, in a major boost for the U.S. planemaker’s efforts to revive its best-selling model after a 20-month grounding.

Dublin-based Ryanair will add to an existing Max purchase by taking 75 more of the single-aisle aircraft, the companies said in a statement Thursday. The firm order has a list value of $9.4 billion before significant discounts that are customary for aircraft purchases.

The deal gives the embattled Max a seal of approval from Europe’s most valuable airline as Boeing attempts to restore global confidence in the workhorse jetliner. Regulators worldwide grounded the plane in March 2019 after two crashes in less than five months killed 346 people. It was cleared to fly again by the U.S. Federal Aviation Administration last month, while European regulators granted preliminary approval.

“Ryanair is once again placing its confidence in the Boeing 737 family and building their future fleet with this enlarged firm order,” Boeing Chief Executive Officer Dave Calhoun said. “We firmly believe in this airplane and we will continue the work to re-earn the trust of all of our customers.”

Boeing climbed 3.6% to $231.89 at 9:51 a.m. in New York. Ryanair was up less than 1% at 15.83 euros in the Irish capital.

The additional jets position Ryanair to expand in coming years as travel rebounds from a collapse caused by the coronavirus pandemic, and financially weaker competitors nurse their balance sheets back to health. CEO Michael O’Leary called the plane a game-changer that will enable his airline to add capacity while reducing fuel burn.