• Boeing shares gained Tuesday after it Seattle-based commercial airplanes division officially signed a deal with Ryanair for hundreds of its 737 MAX passenger jets
  • The Irish ultra-low discount carrier placed a firm order for 150 aircraft and a further 150 options for the 737 MAX 10
  • The MAX 10 is the largest variant of the Boeing passenger jet
  • The 150 firm purchase orders have a list value of US$40 billion
  • Boeing (NYSE:BA) is up 2.24 percent, trading at US$201.71 at 3:03 pm ET

Boeing shares gained Tuesday after it Seattle-based commercial airplanes division officially signed a deal with Ryanair for hundreds of its 737 MAX passenger jets.

The Irish ultra-low discount carrier placed a firm order for 150 aircraft and a further 150 options for the 737 MAX 10.

The 150 firm purchase orders have a list value of $40 billion.

Boeing shares climbed by as much as 3.7 percent during Wednesday’s session, and were still up more than 2.2 percent late in the final hour of trading.

The MAX 10 is the largest variant of the Boeing passenger jet.

The airline says the orders will help it expand its business with more seats per aircraft. The planes are also 20 percent more fuel efficient than the ones currently in Ryanair’s fleet.

This marks the largest-ever order for Ryanair, which began flying in 1984 and is well-known for its no-frills service, low-cost flights.

“The Boeing-Ryanair partnership is one of the most productive in commercial aviation history, enabling both companies to succeed and expand affordable travel to hundreds of millions of people,” Boeing President and CEO Dave Calhoun said in a statement Wednesday.

“Nearly a quarter century after our companies signed our first direct airplane purchase, this landmark deal will further strengthen our partnership. We are committed to delivering for Ryanair and helping the airline group achieve its goals.”

“Ryanair is pleased to sign this record aircraft order for up to 300 MAX 10s with our aircraft partner Boeing. These new, fuel efficient, greener technology aircraft offer 21% more seats, burn 20 percent less fuel and are 50 percent quieter than our B737-NGs,” said Ryanair Group CEO Michael O’Leary.

“We expect half of this order will replace older NGs while the remaining 150 aircraft will facilitate controlled, sustainable growth to just over 300m guests per annum by 2034.  This order, coupled with our remaining Gamechanger deliveries, will create 10,000 new jobs for highly paid aviation professionals over the next decade, and these jobs will be generated across all of Europe’s main economies where Ryanair is currently the No.1 or No.2 airline,” O’Leary said.

“In addition to delivering significant revenue and market growth opportunities across Europe, we expect these new larger more efficient aircraft to drive further unit cost savings, which will be passed on to passengers in lower air fares. The extra seats, lower fuel burn and more competitive aircraft pricing supported by our strong balance sheet, will widen the cost gap between Ryanair and competitor EU airlines for many years to come, making the Boeing MAX 10 the ideal growth aircraft order for Ryanair, our passengers, our people and our shareholders.”

Wednesday’s news comes around two months after Boeing secured a near-record deal with Air India for up to 500 aircraft.

Boeing (NYSE:BA) is up 2.24 percent, trading at US$201.71 at 3:03 pm ET.

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