Ryanair Holdings PLC (LSE:RYA) has pulled out of talks to buy another batch of Boeing Corporation 737 MAX jets, saying the US aircraft maker was being unrealistic over prices.
The news will be a blow to Boeing as Ryanair has been a staunch supporter of the troubled aircraft and is one of the plane’s largest customers.
Ireland-based Ryanair has already ordered 210 737 MAX-8 aircraft, which can carry 197 passengers, but this latest order would have been for an additional 200 of the 230-seat MAX-10.
“We are disappointed we couldn’t reach an agreement with Boeing on a MAX10 order," Ryanair chief executive Michael O'Leary said in a statement.
"However, Boeing have a more optimistic outlook on aircraft pricing than we do, and we have a disciplined track record of not paying high prices for aircraft," he said.
“We do not share Boeing’s optimistic pricing outlook, although this may explain why in recent weeks other large Boeing customers such as Delta and Jet2, have been placing new orders with Airbus, rather than Boeing,” he added.
The MAX has only recently been given clearance to resume flying again after two fatal crashes saw it grounded for twenty months.
O’Leary is one of the plane's biggest backers and has often described the MAX as a game-changer for his airline.
“These new Boeing 737 aircraft will help Ryanair lower costs, cut fuel consumption and lower noise and CO2 emissions," he said in June when it received its first MAX-8 delivery.
"Each B737 aircraft offers 197 seats (compared to our 189-seat current 737 fleet)."
Shares in Ryanair today rose 1.1% to €16.08.