Boeing received an order from Ireland’s low cost airline, Ryanair on Tuesday, which will total $18 billion. Ryan Air will purchase 200 air crafts from Boeing which may include the 737-800 model or BA’s new’Max’ variation model.
This purchase comes just two weeks after the EU turned down Ryanair’s attempt to takeover Ireland based airline Aer Lingus, which Ryanair has been attempting to buyout for seven years.
Ryanair, which is know for having flights as low as 9 euros ($11.71) throughout Europe, will now concentrate on expanding itself. The airline’s target is to fly 80 million passengers throughout Europe and expand in 60 airports by either increasing the amount of flights or flying at certain airports for the first time.
The airline typically operates in smaller airports which are usually outside of the cities that it flys to. This purchase may mean that Ryanair is attempting to expand to larger airports.
Boeing and Ryanair previously were in talks about a major purchase a few years ago, but Ryanair cancelled the order which was worth $14 billion.
Boeing shares were up $1.28, or 1.54% during Tuesday morning trading. The stock has increased 14.5% in the past year.
The Bottom Line
Shares of The Boeing Company (BA) have a 2.30% yield, based on Tuesday morning’s price of $84.17.
The Boeing Company (BA) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.
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