Airbus raises prices for 2012

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For 2012 Airbus has increased the average list prices of its aircraft by 3.9%, except for the A320neo family price, which rises by an average of 6.1%.

“Our new pricing reflects the strong demand for our modern, eco-efficient aircraft families,” said John Leahy, Airbus Chief Operating Officer, Customers. “With competition amongst carriers heating up, any tool that helps cut their costs will pay handsome dividends.”

The 3.9 per cent price increase has been calculated according to Airbus’ standard escalation formula over the January 2011 to January 2012 period, the EADS unit said.

Airbus 2012 average list prices (in million US$), effective January 1:
— A318: $67.7
— A319: $80.7
— A320: $88.3
— A321: $103.6
— A319neo: $88.8
— A320neo: $96.7
— A321neo: $113.3
— A330-200: $208.6
— A330-200F: $211.5
— A330-300: $231.1
— A350-800: $245.5
— A350-900: $277.7
— A350-1000: $320.6
— A380-800: $389.9

Airbus has sold close to 11 500 aircraft and delivered over 7 000 since its first airliner entered service. Last year it outsold Boeing almost two-to-one after gambling on a revamped fuel-efficient jetliner and delivered more jets than its rival for the ninth year running, while admitting it may struggle to keep its order crown this year.

Airbus said it had won orders for 1 608 aircraft or a net total of 1 419 after cancellations, giving it a record market share of 64% by volume or 54 to 56% by value.

The tally includes over 1 220 A320neos, a revamped 150-seat workhorse launched just over a year ago and which prompted Boeing to update its own best-selling jet as the 737 MAX.

Both manufacturers have decided to inject new life into the short-haul A320 and 737 models, their biggest cash cows. They are banking on demand for fuel savings to help airlines stay alive as oil prices remain unusually high through the economic downturn.

Airbus moved first, sweeping up an initial wave of orders in the largest segment of the industry, which is valued at US$2 trillion over the next 20 years, but Boeing posted record sales of its larger and more expensive long-haul 777 mini-jumbo.

Airbus confirmed it had delivered 534 aircraft in 2011. The 5 percent rise from 2010 comes as both Airbus and Boeing plan further increases to meet demand from rising Asian economies.

Between them, the world’s dominant airplane manufacturers made industry history by delivering more than 1 000 aircraft and taking orders for more than 2 500 in a single year as Asia’s growing wealth continued to outshine the bleak Western economy.

Boeing last week reported 921 sales in 2011, or a net total of 805 when adjusted for cancellations, and 477 deliveries. The U.S. company says it has 1 000 firm and provisional 737 MAX orders and has pledged to make 2012 “Boeing’s year”.

While taking a lead against Boeing for now in the short-haul jets used by most low-cost carriers, Airbus is paying a price for delays to its 350-seat A350-1000, a wide-body jet designed to challenge the successful long-range Boeing 777 mini-jumbo.

Airbus pushed back development of the largest of three variants of A350 by two years last summer to deal with industry criticism over the size of its Rolls-Royce engines, but doing so risks losing business when gaps appear in fleet plans.

Something that could dampen Airbus’ performance this year could be continuing problems with its A380. Another set of cracks was discovered in the wings of the world’s largest jetliner, though an engineering union said it was downplaying the issue and some Asian airlines said they would develop inspection programs.

It is the second time in as many weeks that hairline cracks have surfaced inside the mammoth double-decker jet, which entered service four years ago, and their discovery is expected to lead to expanded safety checks.

Airbus said the cracks were found on a number of “non-critical” brackets inside the wings of two aircraft during routine two-year inspections, after similar flaws showed up in five aircraft in early January.

Airbus has dismissed calls to ground its superjumbo fleet over the cracks, which first came to light during repairs of a Qantas A380 damaged by an engine blowout shortly after taking off from Singapore in November 2010.
“It is embarrassing, but we will do everything to ensure safety is not compromised,” Chief Executive Tom Enders said.

Officials said the cracks most likely stemmed from a manufacturing process that put too much stress on the brackets, known as rib feet. The parts themselves were not flawed, according to specialist journal Air Transport Intelligence.

Despite being billed as Europe’s “21st century flagship,” the iconic A380 has already had a bumpy ride due to development problems and the Qantas blowout, and Toulouse-based Airbus is anxious to prevent any further damage to its image.

Airbus has so far delivered 68 superjumbos, starting with Singapore Airlines which took the first aircraft in December 2007. It was followed by Emirates and Qantas.