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SteveJohnson
Guest
After this morning's Qantas announcements on cancelling those 35 Boeing 787s it was reported they would save around $8bn but that this was the official list price and doesn't allow for discounts because no airline pays full price for the new jets.
I remember seeing an article about how much a new Boeing or Airbus really costs, or rather the fact that nobody says how much they really cost, and just went looking for it. It might be interesting reading.
I remember seeing an article about how much a new Boeing or Airbus really costs, or rather the fact that nobody says how much they really cost, and just went looking for it. It might be interesting reading.
The Secret Price of a Jet Airliner
Discounts of 50% or More Off the Sticker Number Are Common as Plane Makers and Buyers Haggle
How much does a new airliner really cost?
When Airbus and Boeing Co. BA -0.64% announce orders at the Farnborough International Airshow this week, they will value the deals based on the planes' catalog prices—which no one pays. Airline executives, when pressed for details, will probably say they got "a great deal." But actual terms will remain guarded like nuclear launch codes.
The aviation industry's code of silence on pricing is notable in this era of information overload. Thousands of people world-wide are involved in airplane purchases, yet few numbers spill out. That yields much mystery and speculation.
"The whole model is wacky," says Robert Milton, chairman of Air Canada parent Ace Aviation Holdings Inc., ACE.T +1.47% who says he approximates the real price of announced multibillion-dollar orders by cutting the stated value in half.
The Mystery of Flight: How Much Airplanes Cost, the Secret Price of a Jetliner - WSJ.com