Good news and bad news for Boeing this week:
The good news first. Irish discount airline Ryanair today revealed it is committed to ordering 175 Boeing 737-800 jets worth 15.6 billion at list prices from Boeing.
The bad news. Indonesia’s Lionair, one of Boeing’s biggest 737 customers, Monday switched to Airbus as a supplier for its single-aisle jets buying more than $24 billion worth of Airbus A320s, A320 Neos and A321 Neos.
The Ryanair order will be used in part to replace part of Ryanair’s all-Boeing 737 fleet. But a majority of the new planes will be used to expand the discount carrier’s fleet.
Ryanair did not order any of Boeing’s newest aircraft, the 737 Max. The Max is equipped with new engines and improved aerodynamics and other enhancements to make it more fuel-efficient.
Airbus is building a similar plane, its Neo line of A320-family aircraft.
The 737s will be built in Boeing’s Renton plant where the company rolled out its first 737 built at its new, higher production rate, 38 a month, this week. The company plans to raise that rate even further to 42 a month.