Ryanair sells its undelivered 737-800's

Blue Punto

Read on 2 different website that Ryanair have sold
EI-ESL/M/N/O and P to Avolon Aircraft Leasing.I didnt read much into it but when I saw it pop up again this morning I thought Id ask on here has anyone else heard of anything.with the fact they are planning to "rest" aircraft over the winter months it could be a way of generating money from aircraft you will not use.

Delta Kilo

Ill keep my eyes open at work for some info if I can but it is most likely a sell and lease back that is going on here.

Its pretty common that airlines do this because they more than likely got a hefty discount from the manufacturer, but they will sell it for current market value to the new owner, in this case a lessor, releasing equity and creating cash flow. They will then lease the aircraft from that lessor paying a monthly rate.

Blue Punto

never thought of that but just this on Airliners.net as i read further(not that what you see there is true all the time)
Order of B.737-8AS (EI-ESL, msn 34988) for Ryanair has been cancelled [+]
· Order of B.737-8AS (EI-ESO, msn 34989) for Ryanair has been cancelled [+]
· Order of B.737-8AS (EI-ESP, msn 34990) for Ryanair has been cancelled [+]
· Order of B.737-8AS (EI-ESN, msn 34991) for Ryanair has been cancelled [+]
· Order of B.737-8AS (EI-ESM, msn 34992) for Ryanair has been cancelled [+]

Tenger

Blue Punto wrote: »

......with the fact they are planning to "rest" aircraft over the winter months it could be a way of generating money from aircraft you will not use.

I previously read an FR statement that they will be 'parking' 80 of their fleet this winter*. That is pretty serious.

A sign of the times really, and you also have EI talking about 'seasonality' in their new business model. Obviously with the lack of disposable income in Ireland the winter breaks have become less common.


In addition I read online that they will reduce the fleet at DUB next year so that DUB will actually be a smaller base than Charleroi. Quite the change from 2008 when it was the 2nd largest base. (STN being the biggest then)







*I realise that they won't actually be parking them up for the winter. They will reduce the overall utilisation to the effect of having 80 less aircraft.

CaptainSkidmark

80!!!! Where in the name of god will they park them?

They might dust off the runway in mallow racecourse

APM

plenty of spare aircraft for the bases. Places like Malaga, Seville, Faro will all have 1 sitting around in case one goes tech or gets bad slot delays away from base

L1011

Ryanair are likely making a profit by selling their order slots for market value and paying the price they agreed with Boeing.

Seeing as they've been retiring -8AS's already its becoming clear they ordered FAR too many planes. I know they like having a young fleet but it is going a bit too far, some of the kit they've sold.

Delta Kilo

MYOB wrote:

Ryanair are likely making a profit by selling their order slots for market value and paying the price they agreed with Boeing.

Seeing as they've been retiring -8AS's already its becoming clear they ordered FAR too many planes. I know they like having a young fleet but it is going a bit too far, some of the kit they've sold.

Not really MYOB. The aircraft will come out of Boeing in full Ryanair livery and in their desired configuration. The lessor will be happy to buy them, a new aircraft already in livery and correct configuration with a guaranteed customer. We see this quite often where I work (involved in leasing). Ryanair are also considering selling some of the 15 spare CFM56-7B engines they have for the same reason. They dont need that many spare engines it was just part of the deal with CFM when they bought the aircraft. Depending on what usage they have had, the engines are worth about 8 million each on average.

Its widely known that the older, first off the production line, 737NGs are not as good as the newer ones, and many airlines are prematurely offloading them. We have seen airlines refuse early model NGs for this very reason, instead holding off for a newer/new model.

I have access to an online database of airlines and fleets and orders etc and i had a look today. They are still showing up as Ryanair orders on that but that is only updated quarterly. While the majority of Ryanair's aircraft are Ryanair owned, there are a few that are leased in.

seanmacc

Could this be a sign of Ryanair playing games with Boeing. Aren't the considering their position on what aircraft they should be using?

http://www.bloomberg.com/news/2011-06-21/ryanair-explores-0rder-for-200-plus-c919-jets-from-china-s-comac.html

Post 911 Ryanair bought up practically all of Boeings 737 production capacity. The result was that if an airline wanted a 737 they had to contact Ryanair and not Boeing. Ryanair are just reacting to the market conditions.

IngazZagni

As far as I know Ryanair are trying to delay deliveries of new aircraft until at least December/January and expect to have approximately 35 delivered between then and May for the Summer period. That will be the end of Ryanair's current deal with Boeing.

Blue Punto

Well Delta Kilo you were right ESL/M/N arrived in Dublin today

Kenny2012

Hi,
3 of the mentioned aircraft were delivered today.
Ryanair restarted deliveries again today with 3 new aircraft arriving in Dublin this lunchtime.
They were EI-ESL, EI-ESM and EI-ESN.
some photos available at :
http://www.flickr.com/photos/namcys1...in/photostream
http://www.flickr.com/photos/namcys1...in/photostream
http://www.flickr.com/photos/namcys1...in/photostream

poker--addict

im afraid it is not a sign of anything for all the conspiracy theory seekers among you.

In simple terms Ryanair ordered a massive number of aircraft at a cost far below average, they sell the aircraft to other firms (banks, investors, etc) at a price below the norm, but also far above what Ryanair paid, instant cash.

Ryanair dont own any aircraft, or if they do the number is probably single figures.

Delta Kilo

I can give you exact figures of how many they own if you like

Its far more than single figures.

But you are correct regarding the tactic. They probably made enough off this deal to cover the lease repayments for a couple of years, at which stage the lease will probably finish.

The leasing company involved are not very well known, could be them trying to increase their brand image so to speak because I cant see a well established leasing company doing a deal like this.

poker--addict

I would imagine they get them so cheap that by the time ryanair have paid them the lease money and they sell them on after that they make a tidy profit too? win win situation!

Trying to think off top of my head how many I have flown owned by Ryanair(directly) and cant put a figure on it but had thought the majoirty were leased. Will take a closer look over next few weeks.

Delta Kilo

56 of their fleet are leased in according to my records, which may be slightly inaccurate but its a good ballpark.

poker--addict

interesting!! Would that include the bought via the like of RBS aviation? Finance as opposed to leasing, maybe that would fall under same thing?

Delta Kilo

Sorry, yeah it includes aircraft financed by the likes of RBS.

Marcusm

FR as far as I recall obtained a fair bit of US Exim financing; for those aircraft they will have the underlying equity interest albeit that the aircraft will be legally owned by an SPV.

Blue Punto

Just as a futher footnote to my initial post
N759BA(CN 34995 EI-ESR (ntu))and N760BA( CN 35043 EI-ESS (ntu))have been ferried from BFI to MZJ for storage as of yesterday

Kenny2012

They are being put into storage until December when deliveries shoud recommence.

ninyule

Yep, EI-ESR is on its way into DUB as I write this...

EchoIndia

And EI-ESS will arrive this afternoon.
http://flightaware.com/live/flight/RYR800S

ninyule

Indeed, EI-ESS has just passed about 10 miles west of my house in North Donegal on its way into DUB...