Airbus Increases its Planes' Prices

One year ago the prices of a new Airbus A320 and A320neo were USD 97 million and 106.2 million. Today, they are being priced at USD 98 million USD 107.3 million respectively. Similarly, the list prices of other models and their variants has also gone up by 1.1%.

One day ago one of the oldest Airbus customers, namely, Air India had announced to dry lease 15 A320s including A320neos. Lessors normally charge an airline between 0.85 to 1 per cent of the aircraft's list price (aircraft cost) as rental per month. .

Now, the buyer will have to pay higher price for buying or leasing A320s  as Airbus could not bring down its cost of production. The European aviation major has made an upward revision in the average list price of its aircraft across models by a little over one per cent.  

"The 1.1 per cent price increase has been calculated according to Airbus' standard escalation formula over the January 2015 to January 2016 period and takes into account the drop in materials and commodities prices. We see demand for our aircraft continuing to grow across all size categories as our reliable, efficient product line enables customers to grow their businesses profitably as well as being favoured by passengers who want to travel in the most comfortable cabins," Airbus Chief Operating Officer, Customers, John Leahy said in the statement. 

Airbus new 2016 price increase reflects the strong appetite from customers around the globe for its comprehensive, modern and innovative product range .. 

In India, Air India, IndiGo, GoAir, Vistara and AirAsia India, are the major Airbus customers. Besides, Jet Airways and SpiceJet also have some Airbus planes in their fleet. There are a total of 211 Airbus planes registered as against 175 of the US aircraft maker Boeings. [Source: DGCA]. 

Significantly, most of the Airbus A320 operators in India are opting for more fuel-efficient A320neos. An A320neo is USD 10 million costlier, and the manufacturer claims it to be 10-15% more efficient in fuel consumption.