Infrastructure

Home page

Infrastructure

Boeing raises jetliner prices

11 August 2012 08:55 (UTC +04:00)

Baku. Nijat Mustafayev â€“ APA. Boeing Co. has raised the list prices of its commercial jetliners by around 6%, the first increase in a year.

The move comes as Boeing and rival Airbus battle to augment already bulging order books with new deals to establish their planned new next generation single-aisle products in the market.

Boeing and Airbus raise list prices every one or two years to reflect higher costs for labor and materials. But both companies also have pricing power as popular models such as the A320 and Boeing’s 737 are sold out for several years.

Boeing last raised list prices in August 2011 when it pushed through an average increase of 4.5%. The Chicago-based company revealed on its website Tuesday that the sticker price of all jets except the 787 family would rise by 6%.

Airbus, a unit of European Aeronautic Space & Defence Co., in January announced an average 3.9% rise in its list prices. Customers rarely pay the list price for jets, typically negotiating discounts, though pre-delivery deposits are based on the published price and will rise as a result of the latest change.

Boeing has increased the list price of its updated 737 Max aircraft for the first time since launching the plane last year. The 737 Max 8 and Max 9 now cost $100.5 and $107.3 million, respectively. The 737 Max 7, the smallest of the family, now sells for $82 million.

The 737 Max 8 is slated to enter service with Southwest Airlines Co. LUV +0.33% in late 2017.

Airbus lists its direct competitor to the 737 Max family, the three-aircraft A320neo family, from $88.8 million to $113.3 million.

Prices for current generation 737s, increased by $3.9 million to $4.7 million depending on the model, and Boeing appears to have dropped the 737-600, its smallest jet, from its catalog. Boeing last sold a 737-600 in 2005.

Additionally, the price of the company’s twin-engine 787 Dreamliner rose by 7%. The smaller 787-8 is listed at $206.8 million, more than 65% higher than when Boeing first announced prices in 2005. Boeing’s largest jets, the 747-8 passenger and freighter models, now list at $351.4 million and $352 million, respectively. The popular 777-300ER now goes for $315 million.