Airbus has raised prices on new planes by about 3 percent as growth in travel and rising fuel prices prompt carriers to order more fuel-efficient...
Airbus has raised prices on new planes by about 3 percent as growth in travel and rising fuel prices prompt carriers to order more fuel-efficient airliners.
The top catalog price for Airbus’ 555-seat A380 airliner will rise about $10 million, or 3.4 percent, to $302 million from $292 million, David Voskuhl, a spokesman at the Toulouse, France-based plane maker, said yesterday. The highest price for the smallest model, the 107-seat A318, will increase 3.2 percent to $54.4 million from $52.7 million.
Airbus last week announced orders and commitments at the Paris Air Show for 280 planes valued at more than $30 billion, raising the company’s total orders and commitments in 2005 to 451 aircraft. The plane maker said Friday it aims to beat second-ranked Boeing in both sales contracts and deliveries this year and next.
“If they can raise prices at all, that’s a good indication for the market, and right now the marketplace seems to be very strong,” said Klaus Breil, a fund manager at Adig Investments in Frankfurt, which has $6 billion under management including shares of European Aeronautic, Defence & Space, Airbus’ 80 percent owner.
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Catalog prices provide a starting point for negotiations between manufacturers and airline customers. Carriers generally get discounts depending on the number of planes in the contract and on Airbus and Boeing’s strategy for getting a particular order.
Transactions for 50 to 100 planes can result in discounts of at least 40 percent from list prices after including the value of spare parts and training, said Doug McVitie, managing director of Arran Aerospace, a consulting company based in Dinan, France.
New plane orders are being partly driven by airlines’ interest in putting more-fuel-efficient aircraft in their fleets amid rising oil prices. Crude oil jumped to a record price yesterday, exceeding $59 a barrel in New York.