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Ryanair CEO Michael O’Leary issued strong warnings to the Trump administration regarding the import tariffs, saying it could cost America’s flagship company Boeing a great deal of money.
Ryanair is still waiting on many Boeing 737 MAX aircraft from the United States. The threat of import tariffs from the Trump camp has created significant uncertainty in the aviation sector. The industry’s production chain depends on parts from various countries; Boeing alone has suppliers in more than fifty countries worldwide. Import tariffs could significantly increase the cost of Boeing aircraft.
Frustrated by the uncertainty, O’Leary is demanding clarity. In a letter addressed to a member of the U.S. Congress, he threatens to cancel Ryanair’s order for more than 330 aircraft. This order represents a value of over 30 billion U.S. dollars (approximately €26.5 billion).
“If the United States proceeds with this ill-conceived plan and actually imposes import tariffs, and if these tariffs significantly affect the price of Boeing aircraft exports to Europe, we will certainly reconsider our current orders with Boeing and may place this order elsewhere,” O’Leary wrote in a letter to a U.S. lawmaker, as seen by news agency Reuters.
Impact
The question remains whether this threat will actually have any impact. Ryanair has long been committed to Boeing, which brings the airline many advantages. In addition to lower aircraft prices, Ryanair also saves on training cabin crew, technicians, and maintenance personnel. Switching to a new partner would therefore be very costly for the airline.
Moreover, the other major manufacturer, Airbus, currently has long waiting times for new aircraft deliveries. Although the Ryanair CEO recently suggested ordering Chinese COMAC aircraft, these are not yet certified in Europe. The current global tensions also offer little prospect for speeding up that process.