Ryanair and Boeing have fallen out in public. Here's why that matters

Boeing is being called out by Ryanair, one of its major customers, for not selling its jets more cheaply. So far Boeing is standing fast and refusing to meet Ryanair's price demand, despite the hit its sales have taken the last two years. On Tuesday Ryanair CEO Michael O'Leary called Boeing's stand on pricing "delusional" and said the aircraft maker's demands for higher prices on future sales were "unjustified and inexplicable." It's an unusually public dispute between two companies with a long and strong business relationship: Ryanair exclusively flies Boeing 737 jets. And it's a sign that demand for aircraft in general — and the troubled 737 Max in particular — has rebounded from pandemic lows faster than many thought possible. It's also a strong indicator that higher prices aren't just causing pain for consumers but also for businesses. Part of Ryanair's business model is based on only flying different versions of the 737, allowing pilots to move seamlessly between planes without additional training and reducing the cost of keeping spare parts for different aircraft models on hand at various airports. Southwest has long followed such business model. But the statements from O'Leary suggest the airline may consider making the jump to a 737 competitor. "Europe's low cost carriers will drive jet demand for Airbus A320 family aircraft and not Boeing," O'Leary wrote in a letter Tuesday. "If Boeing wants to sell aircraft in Europe, it needs to continue to be cost competitive and do a deal with Ryanair." Story has more.<br/>