Irish low-cost carrier Ryanair said it had ended talks with Boeing on an order for 200 aircraft order after a disagreement on contractual terms, and it was to slow investment in 2011 and 2012, sending its shares up.

Ryanair had already said a deal on ordering B737-800 aircraft for 2013-16 delivery was unlikely because the US planemaker wanted to change delivery conditions.

"Ryanair has made clear to Boeing that we will not order aircraft if we believe that either the pricing or the other contractual terms and conditions will be inferior to those which we currently enjoy," chief executive Michael O'Leary said.

Shares in the company had risen 3.77 percent by 0833 GMT, while the broader Irish market index was up 0.54 per cent.

"This decision means capacity growth will ease in each of the next three years, a trend which should allow for more stable if not positive yield performance," Bloxham Stockbrokers said in a note.

Ryanair said the breakdown of negotiations would not alter its plans for receiving 112 Boeing aircraft from 2010-12, and it would continue to work with Boeing on the 48 deliveries scheduled for 2010.

O'Leary said he would bring forward plans to significantly reduce growth and capital expenditure to maximise cash balances for distribution to shareholders from 2012-2015.

"We have no plans to reopen discussions with Boeing or any other aircraft manufacturers", O'Leary said. "Instead, we will focus our efforts on maintaining Ryanair's strong traffic and new route growth into 2010".