Ryanair gambit flops as Airbus snubs offer to bid

Ryanair's attempts to face off Boeing and Airbus in a bidding war over a lucrative multibillion-dollar, 400-jet order may have come a cropper, with the European manufacturer categorically stating it will not be interested in making a sales pitch. Airbus is currently the world's largest manufacturer of commercial aircraft – apposition it exchanges with its American rival Boeing frequently.

John Leahy, Airbus chief commercial officer, said: "We are not in discussions with Ryanair about aircraft. That is on the record. We don't have plans to enter a sales campaign with Ryanair, which would be very expensive and very time-consuming."

Ryanair is set to become of Europe's biggest short-haul airline by number of passengers carried and operates an all-Boeing fleet of 737 short-haul jets. It has also run up a reputation as a shrewd negotiator of large orders, securing a handsome deal with Boeing for more than 100 aircraft in January 2002, after involving it and Airbus in a bidding contest.

The Irish carrier announced this week that it was in early talks with Boeing and Airbus about an order for 300-400 short-haul jets, which will be one of the biggest orders for new aircraft in the aviation industry. Michael Cawley, Ryanair deputy chief executive and chief operating officer, said he expected the order to be placed within 24 months.

Earlier, Michael O'Leary, Ryanair chief executive, had visited Airbus headquarters in Toulouse to present its plans and expectations to the manufacturer.

The unexpected response from Airbus to its overture - that it is not interested in bidding at the prices Ryanair is expecting, has certainly stumped industry experts if not the carrier. Manufacturers are not expected to snub such large orders, particularly when times are bad and orders difficult to come by.