Ryanair links up with China for aircraft talks

Europe’s largest low-cost airline Ryanair signed an agreement with Chinese aircraft manufacturer COMAC yesterday to consult on the development of a new narrow-bodied aircraft that it said was a potential alternative to new Boeing planes.
By The Newsroom
Published 22nd Jun 2011, 07:00 BST

The deal is the latest sign by the Irish airline that it may look beyond its main supplier Boeing and rival Airbus to buy aircraft from less established rivals.

But analysts said that the agreement may be a bid to put more pressure on Boeing to provide better terms for a large fleet upgrade.

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Ryanair, which currently flies only Boeing jets, in May announced that it had met with officials from the Commercial Aircraft Corporation of China and Russian rival United Aircraft.

Under yesterday’s deal, signed at the Paris air show, Ryanair will consult with COMAC on the development of its C919 commercial aircraft, with up to 200 seats, which is due to hit the market in 2018.

Talks with Boeing about a 200-plane order broke down in 2009, but the Irish airline said that it would not rule out a fresh order if Boeing improved its terms.

“In the medium term the agreement with COMAC is more likely a gambit,” said Brian Devine an analyst with NCB stockbrokers, citing the high maintenance costs of introducing a second type of plane to Ryanair’s relatively young Boeing fleet.

“But if they are actively involved in the design, it could allay safety concerns and could be a significant development for the longer term,” he said.

Related topics:RyanairChinaEuropeAirbus