Boeing order up in the air

RYANAIR is considering cancelling its fleet expansion plans, over unresolved cost negotiations with aircraft manufacturer Boeing and could opt, instead, to pass on the unused money to shareholders.

The airline has a fleet of 202 aircraft and orders lodged that will up that to 310 by 2012. Initially, 15 planes were due for delivery in the next year. But those could be scrapped with no penalty for Ryanair if a competitive price isn’t agreed.

“We would prefer to grow, but if Boeing doesn’t share our vision, then I believe Ryanair should change course before the end of this fiscal year and manage the airline over the next three years to maximise cash for distribution to shareholders.