Delayed 737 MAX deliveries for Ryanair cuts into 737-800 conversion feedstock

Ryanair Holdings revised the number of 737 MAX aircraft it expects to be operating in its fleet by Summer 2020 from fifty-eight to just thirty, the company announced today concurrently with the release of its Q1 FY2020 earnings, ended 30 June. Along with MAX deliveries, the carrier had planned to gradually retire some of the units in its 431-strong 737-800 operating fleet. An unidentified customer had reportedly secured rights to a tranche of ten Ryanair 737-800s slated to retire this year for use as conversion feedstock. With a price tag of US$170 million, according to Cargoforwarder Global , there exist a limited number of companies that could both stomach the price tag for ten 737-800s, and secure near-term conversion slots. One possibility is Ireland-based ASL Group, which signed an MoU with Boeing for the purchase of ten, and up to twenty, 737-800BCF conversions last month. However, given that ASL did not provide a redelivery timeline, it would seem unlikely that the carrier would acquire ten units in a single transaction – unless STAR Capital, which acquired the company in June , proves to be more aggressive with the carrier’s fleet strategy. Another possibility is GECAS, the largest customer for 737-800 conversions to date, with a backlog of thirty-four orders and twenty options for 737-800BCF conversions with Boeing, and a backlog comprising of eighteen orders and options for AEI’s 737-800SF conversion program. Regardless of the identity of the 737-800 suitor, Cargo Facts would not be surprised if Ryanair ends up delaying the 737-800 transaction amidst MAX delivery delays. Ryanair’s current 737 MAX delivery timeline is based on the MAX receiving recertification from the FAA in the fall. Boeing, for its part, expects to be able to submit necessary recertification documents to the FAA around September, which, pending recertification, could unground the MAX as soon as October. The group now expects its first 737 MAX delivery in January “at the earliest” following EASA approval. Before the 737 MAX was grounded, Ryanair had originally planned to introduce five 737 MAX aircraft in Q1FY2020. Additional delays, however, could further reduce the number of MAXs Ryanair adds next summer said company CEO, Michael O’Leary during an earnings call with analysts. Even though many of the aircraft destined for Ryanair will have already been assembled, and will be ready for delivery following EASA certification, O’Leary said the airline would not be able to put them all into service as once. Rather, the airline expects to be able to add six-to-eight aircraft per month. Once the MAX is recertified and back in service, O’Leary remains bullish on the aircraft’s ability to transform Ryanair’s cost structure and its business, calling the program a “gamechanger.” The Irish company will not be adding 737 MAX 8s, but rather a special variant of the MAX tailored to the low-cost carrier’s desire to maximize space. Unlike the 737 MAX 8, which in a single-class configuration holds 175 seats, Ryanair’s version of the MAX will boast space for up to 200 seats. Ryanair currently has 135 MAX aircraft on order and options for up to seventy-five more aircraft to begin renewing aging 737 NGs.

Delayed 737 MAX deliveries for Ryanair cuts into 737-800 conversion feedstock

DB Schenker unveils connect 4.0 shipping platform in the U.S.

Kalitta secures contract with DHL for 777F ops

Related Posts

Freighter operators bet on Indian export network

Hoesley to succeed Rimmer as Altavair CEO in 2027

August cargo traffic finishes summer with global growth

Kalitta secures contract with DHL for 777F ops

Cargo Facts Free Newsletters

Cargo Facts Connect Podcast

Follow Us

Welcome Back!

Retrieve your password