Published: Tuesday, June 26, 2007
Boeing boosts list prices for jets
SEATTLE - Boeing Co. has lifted list prices about 5.5 percent for all of its airplanes, including the 787 Dreamliner set to debut next month, to keep up with the costs of labor and materials.
The price increase is "generally consistent with the inflation rate for manufactured goods," said Jim Condelles, a Boeing spokesman. He said rising labor costs were a bigger factor in the price hike than the cost of raw materials, though both played a part in the company's calculations.
Condelles said the company generally raises list prices each year to keep up with costs.
As of last Thursday, a new 787 could cost anywhere from $146 million to $200 million, about 6 percent higher than 2006 list prices, which ranged from $138 million to $188 million, depending on the model. Prices for Boeing 737s, which have racked up more than 7,000 orders over more than 40 years on the market, jumped to $50 million to $85 million, from a range of $47 million to $80.5 million in 2006.
Boeing's list prices, based on different configurations for each type of aircraft, are considered the starting point for negotiations with airlines.
The aircraft maker is on track to roll out its first 787 by July 8. Test flights are slated to begin around the end of August, and the company is set to deliver the first plane for commercial service to All Nippon Airways Co. by May. Boeing has taken 584 orders for the 787.
The price increase is "generally consistent with the inflation rate for manufactured goods," said Jim Condelles, a Boeing spokesman. He said rising labor costs were a bigger factor in the price hike than the cost of raw materials, though both played a part in the company's calculations.
Condelles said the company generally raises list prices each year to keep up with costs.
As of last Thursday, a new 787 could cost anywhere from $146 million to $200 million, about 6 percent higher than 2006 list prices, which ranged from $138 million to $188 million, depending on the model. Prices for Boeing 737s, which have racked up more than 7,000 orders over more than 40 years on the market, jumped to $50 million to $85 million, from a range of $47 million to $80.5 million in 2006.
Boeing's list prices, based on different configurations for each type of aircraft, are considered the starting point for negotiations with airlines.
The aircraft maker is on track to roll out its first 787 by July 8. Test flights are slated to begin around the end of August, and the company is set to deliver the first plane for commercial service to All Nippon Airways Co. by May. Boeing has taken 584 orders for the 787.
Comments
(
