CEO of Ryanair ponders shifting away from Boeing aircraft, favoring an alternative model from China instead.
Squabble Between Ryanair CEO and US Congressman Over Chinese Aircraft
Michael O'Leary, Ryanair's powerhouse CEO, is eyeing a move that's got the US riled up - considering the purchase of cheaper aircraft from Chinese manufacturer, Comac. This comes amidst tension caused by potential tariffs, threatening to escalate the cost of aircraft from established players like Boeing.
The Democrats' House Representative, Raja Krishnamoorthi, isn't too pleased with O'Leary's plans. In an interview back in March, Krishnamoorthi voiced his concerns over O'Leary's statements, as the CEO indicated that if the Chinese aircraft were 10 to 20 percent cheaper than Airbus models, Ryanair would consider it.
Comac's C919 narrow-body aircraft is similar to the best-selling Airbus A320 and Boeing 737, and has secured over 1000 orders, primarily from Chinese companies. Airbus CEO Guillaume Faury suggests that if the competitive landscape shifts, the sector could evolve from a duopoly to a potential triopoly with Comac jumping into the race.
Ryanair, with its fleet of hundreds of Boeing 737s, is among the largest customers of the American aircraft manufacturer. However, with potential EU tariffs looming, the Irish airline is keeping its options open.
Krishnamoorthi, citing a 2018 indictment by the Department of Justice, advised Ryanair against doing business with China, alleging economic espionage in the country's military-industrial complex. Despite these warnings, it appears O'Leary is sticking to his guns, with reports suggesting he's looking for alternative suppliers, including Comac.
If a trade dispute erupts between the EU and the US, tariffs could drive up the prices of aircraft from Airbus and Boeing, potentially providing an opportunity for the rising Chinese manufacturer, Comac. Analysts predict that this could be the catalyst to bring the C919 onto the international stage.
It's a high-stakes dispute that underscores the impact geopolitical tensions and trade policies can have on aviation procurement strategies. Boeing's production issues further complicate the landscape, adding another layer of uncertainty.
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What are Ryanair's CEO's plans regarding potential purchases from Chinese manufacturer Comac, prompting warnings from US Congressman Raja Krishnamoorthi? Michael O'Leary is considering buying cheaper aircraft from Comac, which could revoke Boeing's duopoly in the sector and bring the C919 onto the international stage, if tariffs drive up the prices of Airbus and Boeing aircraft due to trade disputes.
