Re: Airbus on a roll

Date:         25 Nov 96 06:18:48 
From:         kls@ohare.Chicago.COM (Karl Swartz)
Organization: Chicago Software Works, Menlo Park, California
References:   1 2 3 4
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>> Airbus is selling the USAir airplanes at about 45 percent of their actual
>> "retail" cost.

>You probably mean "retail price".  And where does one buy an airliner,
>"retail", anyway?

Good question.  Maybe if Fred's Flying Service wants *one*, they get
to pay full retail.  Maybe nobody does and it's just a place from
which to start haggling.

>Someone like ILFC?

ILFC and their competitors *lease* planes, they don't generally sell
them.

>So Boeing has never discounted an airliner to make a sale?

I believe the point was not the fact that there was a discount but
rather the magnitude of the discount.  Nearly half off is pretty
remarkable.

>Care to comment on pricing for some of Boeings "launch" orders?

SAS launched the 737-600 on March 14, 1995, with an order for 35
aircraft at about $33.4 million each, which was considered to be a
fairly aggressive price.  According to Boeing's web pages, the 1996
price for a 737-600 is $32-$39 million.  Even accounting for some
inflation, it doesn't look like SAS got a huge discount for being
the launch customer.

I recall being quite surprised at how *high* the value was for
United's launch order for the 777.  That order included orders for
747-400s, too, and options equal to the number of firm orders, but
even then the pricetag seemed enormous.

--
Karl Swartz	|Home	kls@chicago.com
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