IMAGE: Michael O’Leary, CEO of Ryanair, contemplating Chinese COMAC Aircraft
On May 1, Ryanair, the Irish low-cost airline, cautioned about the possibility of cancelling orders for several Boeing aircraft due to a tariff dispute instigated by the Trump administration. This scenario may necessitate the airline to explore other suppliers, including the Chinese company COMAC. In a letter addressed to a prominent U.S. legislator, Michael O’Leary, the CEO of Ryanair, expressed concerns that the tariffs imposed by the US government could jeopardise the acquisition of 330 Boeing 737 MAX aircraft that his airline has ordered, with a total list price exceeding $30 billion.
“If the U.S. 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,” O’Leary said.
It is worth noting that Boeing and Airbus contracts reportedly lack tariff clauses, as the industry has traditionally operated without them. The majority of aircraft acquisition agreements contain a provision stipulating that each party is responsible for their own tax obligations, without specifically addressing tariffs, which are usually applied only after aircraft ownership transfers to the purchasing airline and the contract is finalised. There is little doubt that the aerospace industry will take appropriate measures to protect itself from these unwanted turbulences by reviewing the wording of contracts for future deals.
Ryanair, which faces challenges as Boeing tries to resell aircraft blocked from China due to Trump’s tariff war, has now been warned by the House Select Committee on the Chinese Communist Party regarding the potential acquisition of aircraft manufactured in China. Aero News Journal has the story…
IMAGE: Michael O’Leary, chief executive officer of Ryanair Holdings Plc.(Source: Fausto Podavini/Bloomberg)
Aero News Journal reports…
A US Congressman Cautions Ryanair Against Buying Chinese C919 Jetliners
Washington, DC, May 2 – In a pointed letter dated April 29, 2025, U.S. Representative Raja Krishnamoorthi, a Democrat from Illinois and the ranking member of the House Select Committee on the Chinese Communist Party, issued a stern warning to Ryanair, Europe’s largest low-cost airline, against purchasing Chinese-made aircraft. The caution came in response to remarks by Ryanair’s CEO, Michael O’Leary, who indicated the airline might consider acquiring jets from China’s state-owned Commercial Aircraft Corporation of China (COMAC) if the price was significantly lower than those offered by Boeing or Airbus.
Krishnamoorthi’s letter, reported by Reuters, cited serious national security concerns, alleging that COMAC has close ties to the Chinese military and has benefited from the illicit acquisition of foreign intellectual property. He argued that U.S. and European airlines should not contemplate buying planes from companies linked to the Chinese military, emphasising the potential risks to global aviation security and economic fairness.
#aviationnews @Ryanair may cancel its #Boeing orders if U.S. #tariffs significantly raise aircraft prices, CEO Michael O’Leary warned. The airline, set to receive 29 #737MAX planes by March 2026 and 150 MAX 10s from 2027, could turn to alternatives like #China’s COMAC if costs… pic.twitter.com/9yTLUWa2FL
— Aero News Journal-Daily Aviation News (@FlyingFreak73) May 1, 2025
The backdrop to this exchange is a deepening U.S.-China trade war, significantly impacting the aerospace industry. The U.S. has imposed tariffs of up to 145% on Chinese goods, prompting retaliatory measures from China, including 125% tariffs on U.S. products. These trade barriers have driven up the cost of Boeing aircraft, a major U.S. exporter, making them less attractive to foreign buyers like Ryanair, which prioritises cost efficiency. For instance, a Boeing 737 MAX, valued at approximately $55 million, faces prohibitive duties, pushing airlines to explore cheaper alternatives. COMAC’s C919, a narrow-body jet designed to compete with Boeing’s 737 and Airbus’s A320, entered service in China in 2023 after receiving domestic safety certification in 2022. Priced lower than its Western counterparts, the C919 is an appealing option for budget-conscious carriers, though it awaits certification from European regulators, a process that could take years.
Ryanair, which operates a fleet of over 575 Boeing 737s and is awaiting delivery of 29 Boeing 737 MAX 200s and 150 MAX 10s, has expressed frustration with tariff-related cost increases. O’Leary, known for his outspoken style, responded to Krishnamoorthi’s letter by doubling down on his stance. He stated that if U.S. tariffs materially affect the price of Boeing aircraft, Ryanair would reassess its current orders and consider alternatives, including COMAC. While no negotiations with COMAC have occurred since a 2011 partnership that yielded no orders, O’Leary emphasised that a 10-20% price advantage over Airbus could prompt serious consideration of Chinese jets. This stance reflects Ryanair’s long-standing strategy of securing aircraft at the lowest possible cost, regardless of the manufacturer.
Krishnamoorthi’s warning also highlighted broader concerns about COMAC’s ambitions to dominate the global planemaking industry at the expense of Boeing and Airbus. Boeing, grappling with a safety crisis and delayed certifications, recently flew three 737 MAX jets back to the U.S. after Chinese airlines refused delivery due to tariffs. The U.S. aviation industry is lobbying for tariff exemptions under the 1979 Civil Aircraft Agreement, but the outcome remains uncertain. As geopolitical tensions and economic pressures mount, Ryanair’s potential pivot to Chinese aircraft underscores the complex interplay of trade policies, security concerns, and market dynamics shaping the future of global aviation.
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