Boeing Option Quotes

I will fly on a Boeing 737 Max if it is my only option.

Michaelis asked if any alert would tell them when the sensors had failed. “On your airplane, yes,” Sinnett answered. Without mentioning that Boeing had botched the software implementation on other planes, he explained that American had purchased the optional angle-of-attack indicator, which Lion Air had not. Had it been Michaelis’s plane, a little flag notice would have popped up alerting him to disagreement between the AoA vanes, and mechanics would have fixed the sensor on the ground. “So you would not have taken the airplane,” he said.

Yet just days later Ryanair announced that it had placed one of the biggest-ever orders for Boeing’s 737 series aircraft. The company said it would purchase one hundred Boeing 737-800 aircraft in the next eight years and had taken options on fifty more planes, claiming that Boeing’s offer was ‘exceptionally competitive’. Ryanair said the ‘catalogue value’ of the deal was $9.1 billion, but refused to disclose the extent of the discount it had negotiated. Airline industry observers, aware of the US aircraft manufacturer’s desperate need to win the contract, speculated that it amounted to between 30 and 50 per cent. Boeing had been forced to sharply reduce its aircraft production and to lay off up to 30,000 workers as it struggled to stave off a financial crisis in the wake of the terrorist attacks. Some people who know O’Leary and Tony Ryan well suggest one of their great similarities is their ability to ‘corner their prey’.

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