Content area
Full Text
But Net Prices Remain Virtually Stagnant
The differential between list prices and values of new aircraft continues to widen as Boeing announces a rise of 4.1 percent.
The publishing of list prices has come earlier in the year matching the release date of those provided by Airbus. The average rise across the commercial product lie in 4.1 percent. This compares with 2.2 percent last year and zero for 2016. The 4.1 percent rise is extremely high in such a low inflation environment. In the U.S. consumer inflation rose by only 2.1 percent for the whole of 2017 which was also the same as for 2016. Consequently, Boeing has increased list prices by nearly double the consumer price index. The inflationary factors used by Boeing are different and involve specific industry indices as well as power and material costs. Fuel costs have risen this year....