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Join Us At 0900ET, Friday, 4/10, for the LIVE Morning Brief.
Watch It LIVE at www.airborne-live.net

Fri, Aug 10, 2012

The Cost Of Buying An Airliner Just Went Up

Boeing Announces A 5.5 Percent Price Hike

If you were thinking about buying an airliner from Boeing, the base price for their airplanes just went up by 5.5 percent. Boeing said in announcing the price hike that it was necessary to cover higher costs for wages, goods, and services.

That means that the list price for a 737 MAX jumps to $100.5 million, a 747-8 has a sticker price of $351.4 million, and a new Dreamliner off the showroom floor will set you back $206.8 million for the mid-sized -8 model.

Reuters reports that the list prices are just that ... list. Aviation analysts point out that companies like Boeing and Airbus often deeply discount the prices of their products, particularly for big orders.

Boeing has outrun Airbus for orders this year, prompting the European planemaker to cry "foul" for what it called "extremely aggressive" pricing in such deals as the one with Singapore's Silkair. But Boeing countered with a description of its pricing as "competitive."

Of course, the price doesn't include taxes, tags, title, destination charge, or dealer prep. Maybe they'll throw in the floor mats.

FMI: www.boeing.com

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