Ryanair terminates talks with Boeing - December 19, 2009
The group Ryanair has confirmed Friday it has terminated negotiations were underway with the aircraft manufacturer Boeing for the acquisition of 200 Boeing 737-800 aircraft for delivery between 2013 and 2016. Not having managed to "satisfactorily concluded" discussions with the American "ended without success.
Friday, CEO of the company, Michael O'Leary has accused Boeing of "not wanting to incorporate (in the contract, editor's note) some terms and conditions now existing" between the two companies. An investment in such conditions "is not a wise or sensible use of shareholders' money," he said.
A first dividend
The surplus money from the end of the negotiations should be partially paid back to shareholders.The decision by Ryanair will cause "a big reduction in capital expenditures in 2011 and 2012, generating significant surpluses to be distributed between 2012 and 2015," said Michael O'Leary. Until now, Ryanair has never distributed a dividend.
The company insisted that the breakdown in negotiations would not affect the delivery of 112 B737-800 scheduled for the next three years, "thereby supporting the robust traffic growth in the medium term." "Perhaps in future there will be more opportunities for Ryanair and Boeing to work together in our common interest from 2013," concluded the Director General.