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Airbus raising airliner list prices

Post by John Gillie / The News Tribune on Jan. 29, 2010 at 2:50 pm with No Comments »
January 29, 2010 2:50 pm

Europe’s Airbus today announced list price increases averaging 5.8 percent on its family of airliners.

Airlines rarely pay those full prices but they represent the prices from which bargaining starts for substantial orders.

The European planemaker, the world’s largest, said exchange rates against the dollar and escalating material costs were among the items causing the increases. Most aircraft are priced and paid for in U.S. dollars. Airbus pays many of its costs in euros.

When the euro becomes more valuable against the dollar, the company is caught in a squeeze. The European planemaker is also facing multi-billion-dollar cost overruns on its A400M military transport and faces to prospect of never making a dime on its huge A380 program.

The new list prices, in some cases make Airbus aircraft more expensive than comparable Boeing aircraft.

The popular A320, for instance, increased in price by $4.4 million to $81.4 million. Boeing lists the comparable 737-800 at $72.5 to $81.0 million.

The A350-800, a composite-bodied aircraft still under development, jumped to $225.2 million for the -800 model. Boeing lists its comparable 787-900 at $194 million to $205 million.

The superjumbo A380 with 550 seats costs $346.3 million compared with Boeing large jumbo, the 747-8 at $293 million to $308 million. The 747-8 is smaller than the A380 with 465 seats.

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