Airbus Ups Prices For Aircraft Rrom May 1

[Charenjit Gill 0]

KUALA LUMPUR: Airbus is increasing the list prices of its planes by between US$2mil and US$4mil with effect from May 1 following the weak US dollar and compounded by the record high metal prices.

 

The aircraft manufacturer said in a statement on Wednesday that including the 2.74% normal increase for 2007, it was increasing by US$2mil per single-aisle aircraft and US$4mil per wide-body long range and A380 Family aircraft.

 

“The price increase is mainly triggered by the weak US currency and the overall increase of world market's raw material prices – especially with regards to metal. It is the first time since 2003 that Airbus applies a price increase above escalation,” it said.

 

Airbus said the US dollar was at its lowest rate in 20 years. Over the last 12 months the Euro versus the US dollar exchange rate moved from 1.35 to almost 1.60, which translated into a devaluation of more than 15%.

 

It also said prices for metal-products (aluminium plates, stainless steel) have risen by at least 6.5%, and costs for industrial products in the euro-area increased by 5% last year.

 

Titanium, steel, aluminium, aluminium-lithium still account for at least 40% by weight in modern aircraft design. Airbus chief operating officer John Leahy said the increase was to keep pace with the world market price developments and secure profitable deals.

 

“Our state-of-the-art aircraft are setting the benchmark regarding eco-efficiency, delivering more value with less environmental impact, and providing more with less. This translates into real savings, since fuel expenses today can be up to 40% of an airline's operational cost," he said.

 

Until end-March, Airbus sold over 8,800 aircraft to more than 370 customers and operators and has delivered over 5,100 aircraft since it first entered service in 1974. Its backlog was above 3,700 aircraft, which meant it had secured up to six years of production.