Airbus Raises Prices as Weak Dollar Weighs
By James Regan, Reuters | Jan. 29, 2010
European planemaker Airbus has raised the prices for its aircraft by 5.8 percent on average as it struggles with a weak dollar and rising material and commodity prices, it said on Jan. 29.
The increase applies to all new aircraft as of this month and is the first hike for two years, Airbus said in a statement.
"Even with record aircraft deliveries and impressive orders in recent years, the continuing strength of the euro against the U.S. dollar and the ongoing financial challenges ahead have forced us to take action," Airbus sales chief John Leahy said.
Airbus delivered a record 498 aircraft last year, up by 15 from 2008, but a slump in demand from airline customers struggling through the economic crisis led to a 66 percent drop in gross orders to 310.
Planes are typically priced in U.S. dollars and tend to be sold for less than the catalogue price. The bulk of the price is paid on delivery. The euro is currently worth just under US$1.40.