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Low dollar and high metal prices lead Airbus to increase aircraft list prices


Airbus today announced a general price increase for its aircraft. On top of the 2.74% normal escalation for the year 2007, the price increase comprises an additional two million US Dollars per single-aisle aircraft and four million US Dollars per wide-body long range and A380 Family aircraft. The new pricing will apply as of 1st May *.

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.

The US dollar is at its lowest rate in 20 years. Over the last 12 months the Euro vs. US Dollar exchange rate moved from 1.35 to almost 1.60, which translates into a devaluation of more than 15 per cent. Prices for metal-products (aluminium plates, stainless steel etc.) have gone up by at least 6.5 per cent, and costs for industrial products in the euro-area increased by 5 per cent in the course of 2007. Titanium, steel, aluminium, aluminium-lithium still account for at least 40 per cent by weight in modern aircraft design.

“We have to keep pace with the world market price developments and secure profitable deals”, said John Leahy, Airbus’ Chief Operating Officer Customers. “Additionally, our modern portfolio of aircraft is delivering an excellent return on investment and an outstanding value for money to our customers. 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 percent of an airline’s operational cost.”

Airbus’ modern and comprehensive product line comprises three highly successful families of aircraft ranging from 107 to 525 seats: the single-aisle A320 Family (A318/A319/A320/A321), the wide-body long-range A330/A340 and the all-new next generation A350 XWB Family, and the ultra long-range, double-decker A380 Family. Airbus’ unique family concept ensures that Airbus fly-by-wire aircraft share a unique level of operational commonality in airframes, on-board systems, cockpits and handling characteristics, which contributes also to a significant reduction in operating costs for airlines.

Until End of March, Airbus has 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 stands at above 3,700 aircraft, securing up to six years of production.


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