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Wed, Jan 19, 2011

Victims Of Their Own Success? The Price Of Airbus Just Went Up

Aircraft List Prices Increases As Of January

Airbus said Tuesday it has increased the average list price of its aircraft by 4.4 per cent. The increment applies for all new aircraft from the beginning of January 2011, apart from the A380, for which the increase is 8.4 per cent.

The 4.4 per cent increment has been calculated according to the Airbus standard escalation formula over the January 2010 to January 2011 period. Meanwhile the A380’s additional price adjustment reflects the type’s outstanding revenue-generating performance now being demonstrated in airline service.

“As we continue to ramp-up production rates to meet the unprecedented global demand for Airbus aircraft, the required industrial investments we are making, coupled with a weak Dollar, necessitates raising our aircraft prices across the board,” said John Leahy, Airbus Chief Operating Officer, Customers. “Moreover, the A380’s further price adjustment reflects the type’s exceptional value it clearly generates for its operators, with whom it has exceeded all expectations in service.”

FMI: www.airbus.com

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