Ryanair Threatens to End Relationship with Boeing, Confirm Deferrals and Cancellations (RYAAY,BA)

11/2/2009 - Irish airline Ryanair (NASDAQ:RYAAY) reported reported an 80% rise in net profit Monday, but also had some words about aircraft supplier Boeing (MYSE:BA) in its release. CEO Michael O'Leary said, "I regret to report that we have made little progress in our discussions with Boeing for an order of 200 aircraft for delivery between 2013 and 2016. We wonaEUR(TM)t continue these discussions indefinitely and have signalled to Boeing that if they are not completed before the year end, then Ryanair will end its relationship with Boeing and confirm a series of order deferrals and cancellations . . . We would prefer to grow, but if Boeing doesnaEUR(TM)t share our vision, then I believe that 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. If we cannot invest our surplus cash efficiently in new aircraft, then we should distribute it to shareholders." Shares of Boeing rose 0.4% in early Monday trading.

Write to Chip Brian at cbrian@tradethetrend.com

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