Re: Airbus on a roll

Date:         25 Nov 96 06:18:47 
From:         Joseph Edward Nemec <>
Organization: Massachvsetts Institvte of Technology
References:   1 2 3
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C. Marin Faure wrote:
> In article <airliners.1996.2317@ohare.Chicago.COM>, wrote:
> > Karl Swartz wrote:
> > > Airbus has landed an order from USAir for 120 aircraft, a mix
> > > of A319s and A320s ...  Boeing reportedly lost
> > > the order, in part, because 737 production is already being pushed
> > > and Boeing was unable to offer as high a delivery rate as quickly.
> > No doubt.  However another story I read mentioned more attractive
> > financial terms as well.
> Airbus is selling the USAir airplanes at about 45 percent of their actual
> "retail" cost.

Is it THAT low?

I expected them to be selling the planes at about 35 million on a list
price of 45 million, but I never expected Airbus to go below 30 million
per plane.

My suspicion is that Airbus has two reasons that they would fight so
aggressively to get an order. Number one, they want to break into the
North American market. Number two, they are trying to increase their
market share figures to get investment for the development of the

Any comments?

Joseph Edward Nemec