Ryanair threatens to ditch Boeing for Chinese jets over Trump tariffs
The boss of Ryanair has threatened to cancel orders with American aircraft maker Boeing and buy from Chinese manufacturers instead if Donald Trump's trade tariffs push up costs.
In a letter to top US lawmakers, Michael O'Leary criticised Washington's trade war with Beijing and warned that a 'material' impact on the price of aircraft could prompt his company to take its business elsewhere.
The Irishman said Ryanair could even turn to state-owned Commercial Aircraft Corporation of China (Comac), a threat sure to anger Mr Trump, who has made isolating China a key aim of his trade war.
Ryanair, the largest carrier in Europe, is currently waiting on the delivery of 29 Boeing 737 Max 200 planes, out of a total order of 210.
It has also ordered 150 Max 10 jets, the largest in the 737 family, for delivery from 2027 with the option of another 150 afterwards.
Aircraft manufacturers rely on complex supply chains that criss-cross both the US and Europe. Mr Trump's tariffs mean that the industry, which previously enjoyed duty-free status, is facing a raft of unexpected costs.
Manufacturers have signalled to shareholders that they will seek to pass these on to customers rather than absorb them. But the suggestion is unlikely to go down well with airlines.
In his letter, first reported by Reuters, Mr O'Leary told American lawmakers: 'If the US government proceeds with its ill-judged plan to impose tariffs, and if these tariffs materially affect the price of Boeing aircraft exports to Europe, then we would certainly reassess both our current Boeing orders, and the possibility of placing those orders elsewhere.'
Mr O'Leary said there had been no conversations with Comac, but said Ryanair would 'of course' consider Chinese aircraft if they were up to 20pc cheaper than those made by Boeing's arch-rival, Airbus.
Comac has been trying to compete with short-haul models sold by Airbus and Boeing with its C919 plane, which entered service in China two years ago. It has not yet been certified by aviation regulators in Europe.
It is not the first time Mr O'Leary, who has run Ryanair since 1994, has suggested he may be open to buying Chinese planes. Ryanair previously announced a partnership with Comac in 2011, although it resulted in no actual orders.
In an interview in March with the news website Skift, he said: 'The Chinese are basically building a f---ing [Airbus] A320.
'So if it was cheap enough, then we'd order it. Ultimately the aircraft will be certified. We're always focused on buying aircraft at the lowest possible price and at the most opportune time.
'I don't care who makes them, whether it's Boeing, Airbus, or Comac.'
Some analysts have speculated that Mr O'Leary's public statements are a negotiating tactic.
Raja Krishnamoorthi, the most senior Democrat on the house committee on the Chinese Communist Party, warned against placing orders with Comac, arguing that it had close ties to the Chinese military and had likely benefited from intellectual property theft.
'Respectfully, US and European airlines should not be even contemplating the future purchase of airplanes from Chinese military companies,' he said in a letter to Mr O'Leary.
Boeing is a top American exporter and has already suffered consequences from Mr Trump's trade policies.
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