Colonel Savage
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PARIS (AP) — European planemaker Airbus is increasing catalog prices for its aircraft to reflect the low dollar and high metals prices.
As of May 1, Airbus is adding an extra $4 million (about 2.5 million euros) to the price tag of its superjumbo A380 and wide-body long range jets, Airbus says. The planemaker lists the A380 at $327 million and the A350-800XWB at $208 million, although it often offers substantial discounts on the catalog prices.
It is also charging an extra $2 million (about 1.3 million euros) for single-aisle aircraft such as the A320, listed at $77 million.
The increases come on top of the regular 2.74% yearly escalation for 2007.
"We have to keep pace with the world market price developments and secure profitable deals," said John Leahy, Airbus' chief salesman, in a statement.
The 15-nation currency hit its latest record of $1.5982 last Thursday.
Over the past year, Airbus said the dollar has depreciated more than 15% while the prices of aluminum plates, stainless steel and other metal products that it uses to build planes have gone up at least 6.5%.
Titanium, steel, aluminum, and aluminum-lithium account for at least 40% of the weight of modern aircraft, Airbus said.
The European planemaker, which sells its planes in dollars while many of its costs are in euros, says each 10-cent rise in the euro against the dollar costs the company $1.59 billion.
To protect itself, Airbus' parent EADS is remodeling its business to shift more of its costs into dollars.
Its North America unit announced Tuesday it is boosting its defense capabilities in the United States with the acquisition of California emergency response service company PlantCML for around $350 million.
As of May 1, Airbus is adding an extra $4 million (about 2.5 million euros) to the price tag of its superjumbo A380 and wide-body long range jets, Airbus says. The planemaker lists the A380 at $327 million and the A350-800XWB at $208 million, although it often offers substantial discounts on the catalog prices.
It is also charging an extra $2 million (about 1.3 million euros) for single-aisle aircraft such as the A320, listed at $77 million.
The increases come on top of the regular 2.74% yearly escalation for 2007.
"We have to keep pace with the world market price developments and secure profitable deals," said John Leahy, Airbus' chief salesman, in a statement.
The 15-nation currency hit its latest record of $1.5982 last Thursday.
Over the past year, Airbus said the dollar has depreciated more than 15% while the prices of aluminum plates, stainless steel and other metal products that it uses to build planes have gone up at least 6.5%.
Titanium, steel, aluminum, and aluminum-lithium account for at least 40% of the weight of modern aircraft, Airbus said.
The European planemaker, which sells its planes in dollars while many of its costs are in euros, says each 10-cent rise in the euro against the dollar costs the company $1.59 billion.
To protect itself, Airbus' parent EADS is remodeling its business to shift more of its costs into dollars.
Its North America unit announced Tuesday it is boosting its defense capabilities in the United States with the acquisition of California emergency response service company PlantCML for around $350 million.
