90 days, same as cash

Published 9:00 pm Monday, February 13, 2006

And here’s an interesting tidbit from Commercial Aviation Review http://www.leeham.net/filelib/Excess_Baggage_AB_Boeing_pricing.pdf — two analysts take their bests shots at calculating what kinds of discounts Boeing and Airbus are offering customers.

Their assumptions? Boeing routinely comes down between 20 and 30 percent on its list price, while Airbus typically discounts in the 30 to 35 percent range.

Key Quote: “There are, of course, stories around the industry that discounts are occasionally even deeper. Ryanair let it slip that its big order for 737-800s a year or so ago was priced at $29m, with a retroactive clause to its previous order. Business Week reported that the launch orders for the A380 were … as low as $130m, which Airbus has denied.”

Author Scott Hamilton notes that both manufacturers have complained over the years that the other one was giving away jets to win market share. His conclusion? “Both companies engaged in making excuses.”