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Boeing Raises Prices On Commercial Jetliners

Wed, 08/08/2012 - 1:55pm
The Associated Press

CHICAGO (AP) — Boeing Co. says it is raising prices of its commercial jetliners by about 6 percent to offset higher wages and other costs.

Pricing for commercial planes is a bit murky. Airlines routinely get discounts off the list prices, and financial terms of orders are rarely if ever disclosed.

Still, Boeing posted new prices on its catalog Tuesday, showing increases over 2011 prices of 5.6 percent for most of its planes and an additional hike of 1.5 percent for its new 787 jet, which it calls the Dreamliner.

Boeing spokesman Thomas Brabant said the 2012 prices reflected higher costs for wages, goods and services. He said the company based the increase on official indexes such as the employment cost index for wages and the industrial commodities index, which are compiled by the Labor Department.

Sticker prices range from more than $350 million for the passenger and cargo versions of the retooled 747 jumbo jet to $74.8 million for the smaller 737-700.

The 787 comes in two configurations, One costs $206.8 million, the other is $243.6 million.

The list price of Boeing's 737 Max, which the company promises will be more fuel-efficient than current models of the popular single-aisle jetliner, ranges from $82 million to $107.3 million, depending on size.

The first delivery of a 737 Max to Southwest Airlines is expected in 2017, about two years behind the scheduled debut of Airbus' competitor, the new A320neo. Both planes are designed for short and medium-haul routes.

Chicago-based Boeing and Europe's Airbus have been battling for orders from the world's airlines, which are eager to upgrade their fleets with planes that are more fuel-efficient. Both companies have huge backlogs of several thousand orders.

In January, Airbus raised the average list prices of its planes by 3.9 percent and increased the A320neo family by 6.1 percent, to an average of $96.7 million.

Boeing shares rose $1.57, or 2.2 percent, to close at $74.46.

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