Ryanair to order Boeing 737s

January 23, 2002 Posted: 1318 GMT

LONDON (CNN) -- Ryanair, Europe's biggest budget airline, plans to order up to 100 Boeing 737 aircraft on Thursday, sources told CNN.

Low-cost airlines -- like Ryanair (RYA), Easyjet (EZJ) and Go -- are expanding their fleets as demand continues to grow, even as traditional national flag carriers cut routes and jobs, and ground aircraft to counter the impact of an economic slowdown and the effects of September 11.

Ryanair's order for 75 Boeing 737's would be worth about $4.2 billion, according to list prices. A Boeing 737-700 aircraft, which can seat up to 149 passengers, can cost between $46.5 million and $55 million.

The Dublin-based carrier advertised last year for 50 second-hand 737s as it moves to take on Europe's national carriers. It plans to launch flights from Frankfurt, pitching it in a dog fight with Lufthansa, which has said it may consider starting up its own budget airline.

The order would be a welcome fillip for Boeing, which has been forced to shed 30,000 jobs, in its bid to control costs as airline orders decline. Its European rival Airbus  won an order for 10 A320 aircraft from JetBlue Airways, a U.S. low-fare carrier, earlier this month.

Airbus is desperate to break Boeings stranglehold on the low-cost aircraft market. Boeing's 737 is currently the aircraft of choice among budget airlines.

Ryanair plans to hold a joint press conference with Boeing in London on Thursday. Sources would not give the exact number of orders or options.