Boeing Boosts Plane Prices
Tue, 06/26/2007 - 7:30am
SEATTLE (AP) - Boeing Co. has raised 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,'' according to 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 (euro108.46 million) to $200 million (euro148.58 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 a range of $50 million (euro37.14 million) to $85 million (euro63.15 million), from a range of $47 million (euro34.92 million) to $80.5 million (euro59.8 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. next May. Boeing has taken 634 orders for the 787.