LONDON (MarketWatch) -- Ryanair Holdings, Europe's largest no-frills airline, on Friday said it has ended negotiations with Boeing Co. about buying up to 200 aircraft and has no plans to reopen discussions with Boeing's rival Airbus.
The Dublin-based budget carrier said that while the two parties had reached an agreement in pricing, the talks collapsed because Boeing /quotes/comstock/13*!ba/quotes/nls/ba (BA 55.26, +0.12, +0.22%) refused to offer the same delivery conditions as in their current contract.
Ryanair /quotes/comstock/23s!e:rya (UK:RYA 3.40, +0.02, +0.52%) /quotes/comstock/15*!ryaa.y (RYAA.Y 27.67, -0.38, -1.35%) "has made clear to Boeing that we will not order aircraft if we believe that either the pricing or the other contractual terms and conditions will be inferior to those which we currently enjoy, as this would not be a wise or sensible use of shareholder funds," it said in a statement.
U.S.-listed shares of Ryanair jumped 6% to close at $27.04 and were up nearly as much in London trading. Shares of Boeing slipped 1.9% to $53.44, as the Dow Jones Industrial Average component led a wider decline in the aerospace sector.
Ryanair ends talks to buy 200 Boeing jets - MarketWatch
While the deal between Boeing and Ryanair seemed to be more than a little on the unsensible side, one would think that Boeing given the state of the US economy and it's Union problems as well as issues with the 787 would make every effort to keep a deal in play for 200 aircraft.
The Dublin-based budget carrier said that while the two parties had reached an agreement in pricing, the talks collapsed because Boeing /quotes/comstock/13*!ba/quotes/nls/ba (BA 55.26, +0.12, +0.22%) refused to offer the same delivery conditions as in their current contract.
Ryanair /quotes/comstock/23s!e:rya (UK:RYA 3.40, +0.02, +0.52%) /quotes/comstock/15*!ryaa.y (RYAA.Y 27.67, -0.38, -1.35%) "has made clear to Boeing that we will not order aircraft if we believe that either the pricing or the other contractual terms and conditions will be inferior to those which we currently enjoy, as this would not be a wise or sensible use of shareholder funds," it said in a statement.
U.S.-listed shares of Ryanair jumped 6% to close at $27.04 and were up nearly as much in London trading. Shares of Boeing slipped 1.9% to $53.44, as the Dow Jones Industrial Average component led a wider decline in the aerospace sector.
Ryanair ends talks to buy 200 Boeing jets - MarketWatch
While the deal between Boeing and Ryanair seemed to be more than a little on the unsensible side, one would think that Boeing given the state of the US economy and it's Union problems as well as issues with the 787 would make every effort to keep a deal in play for 200 aircraft.
