Boeing's Big 737 Max Win Isn't Only About Orders
The real triumph of the announced purchase from Ryanair is about pricing power — or at least the perception of it.
Ryanair's "modest" discount on a big order of 737 Max planes is a PR victory for Boeing.
Photographer: Alberto Pizzoli/AFP via Getty Images
Boeing Co. scored a much-needed victory on Thursday when budget airline Ryanair Holdings Plc said it ordered 75 more of the company’s 737 Max jets. But the real triumph is about pricing power — or at least the perception of it.
The deal with Ryanair marks the first large purchase of the Max since the Federal Aviation Administration ended a 20-month grounding of the embattled jet last month. The flying ban was spawned by two fatal crashes of the Max, and Ryanair's willingness to spend anew on the plane is a key step in Boeing's rehabilitation. Most important, it’s a firm order. British Airways owner IAG SA gave Boeing a vote of confidence at last year’s Paris Air Show by signing a letter of intent for 200 of the Max jets, but that agreement has yet to be finalized and may ultimately look different. IAG in May said it was deferring deliveries of 68 Boeing and Airbus SE planes.