DUBLIN— Irish carrier Ryanair (FR) threatens to cancel its massive $30 billion order for 330 Boeing 737 MAX aircraft as tensions escalate over proposed US tariffs.
CEO Michael O’Leary’s stern warning to US lawmakers signals potential industry reshuffling, with Chinese manufacturer COMAC emerging as an alternative supplier.
The European budget carrier’s stance intensifies pressure on Boeing amid its ongoing production challenges and creates uncertainty for Dublin Airport (DUB) based operations.
Reuters first reported this development, highlighting growing concerns throughout the commercial aviation sector about cross-border trade disputes.
Photo: By MarcelX42 – Own work, CC BY-SA 4.0, https://commons.wikimedia.org/w/index.php?curid=119387148Ryanair Can Cancel Boeing Order
Ryanair’s letter to an unnamed senior US lawmaker marks a significant escalation from previous statements.
“If the US government proceeds with its ill-judged plan to impose tariffs, and if these tariffs materially affect the price of Boeing aircraft exports to Europe, then we would certainly reassess both our current Boeing orders and the possibility of placing those orders elsewhere,” O’Leary stated, according to Reuters reporting.
The Irish carrier’s challenge represents a critical moment for Boeing, already struggling with production delays and safety concerns.
With 330 aircraft on order at list prices exceeding $30 billion, Ryanair’s business represents one of Boeing’s most valuable commercial relationships in Europe.
Industry analysts note that while contract cancellations are rare in commercial aviation due to limited suppliers and long production backlogs, the current geopolitical climate creates unprecedented uncertainty.
Boeing contracts typically don’t include specific tariff provisions, as the industry has operated without them for decades.
Photo: Global TimesChinese Alternative Gaining Attention
O’Leary confirmed Ryanair hasn’t engaged with Commercial Aircraft Corporation of China (COMAC) since approximately 2011 but would “of course” consider their offerings if priced 10-20% below Airbus alternatives.
COMAC’s C919 aircraft, seating approximately 150 passengers (up to 190 in high-density configurations), represents a smaller alternative to Boeing’s 737 MAX 10 that can accommodate up to 230 passengers.
While no Western airline has purchased COMAC aircraft to date, the Chinese manufacturer has applied for European certification for its C919 jet.
Airbus, Boeing’s primary competitor, has repeatedly stated they are sold out through the remainder of the decade, further limiting Ryanair’s alternatives should they follow through with cancellations.
Photo: By World Travel & Tourism Council – Michael O’Leary, CEO, Ryanair, CC BY 2.0, https://commons.wikimedia.org/w/index.php?curid=54703627Trade Tensions Creating Industry Uncertainty
The threat comes amid Boeing’s efforts to navigate Chinese market challenges, recently repatriating jets to the US due to delivery complications stemming from existing tariffs. These developments prompted additional criticism of Beijing from former President Trump.
Aviation industry sources suggest O’Leary’s public statements may partially represent tactical positioning before difficult behind-the-scenes negotiations with Boeing. Contract cancellations typically face resistance from manufacturers, who can cite numerous excusable factors, including supply chain difficulties.
For Boeing, losing Ryanair’s business would represent not just a financial blow but a strategic setback in its competition with Airbus in the European market. For Ryanair, finding alternative aircraft suppliers presents significant challenges given limited options and certification timelines.
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