Boeing Commercial Airplanes spokesman Jim Proulx stated the manufacturer is raising list prices for its aircraft (Reuters/Bloomberg, 13-Dec-2010). The new prices are an across-the-board increase in list prices of approximately 5.2%. The company added that the list price of the B787-8 will be raised by 5% with a 2% increase for the B787-9. After the increase, average list prices for B787 models now range from USD185.2 million to USD218.1 million and average around USD201.7 million across the two models. The price of the B737-800 is now USD80.8 million per aircraft, up from an average of USD76.8 million, while average prices have been raised from around USD69.3 million to around USD71.4 million. The B777 list price has increased from USD146 million to around USD258.2 million. Boeing last raised prices in 2008 with an average 2.6% increase, following a 5.6% increase in 2007. The company stated higher costs for wages, goods and services are the reason behind the increase.
Boeing raises list prices on commercial aircraft
You may also be interested in the following articles...
Gol warns capacity imbalance created by competitors could pressure yields in Brazil
Brazil’s largest domestic airline, Gol, is maintaining a cautious outlook for 2017 as concerns about capacity additions by Azul and Avianca Brazil create an overhang for a recovery in the country’s domestic market. Gol and its main competitor LATAM Airlines Brazil have maintained a rational supply during the last couple of years, but forward looking schedules for 2017 show double digit ASK growth for Azul and Avianca Brazil year-on-year in early May-2017.
Gol made progress in unit revenue and yield recovery in 2016, but remains concerned about the effects of competitive capacity growth on fares, and ultimately yields. The airline is forecasting slower yield growth in 2017, and is warning a lack of industry capacity discipline could create additional yield pressure. Gol plans to keep its own system capacity in check for 2017, with projections of flat growth to a 2% decrease as its fleet shrinks, before growing in 2018 when the airline takes first deliveries of its 737 Max jets.
Although the corporate market within Brazil remains in tenuous shape, Gol believes it has expanded its share among business travellers – driven in part by network changes it adopted in 2016 to make schedules more attractive to corporate customers. However, the size of Brazil’s corporate travel market remains stagnant, and predicting expansion of business travel remains difficult.
WestJet positive about its revenue performance as it works to shore up falling returns
Canada’s WestJet is maintaining a reasonable level of confidence that its unit revenue growth will outpace cost inflation in early 2017, as it attains positive unit revenue in 1Q2017 for the first time in eight quarters. Improving conditions in the province of Alberta and growing ancillary revenue are helping to lift WestJet’s unit revenues in early 2017.
WestJet’s return on invested capital has been falling during the last few months, dropping out of its targeted range of 13% to 16%. The airline is not offering a specific timeframe to post an improved ROIC performance, but believes a better operating environment in Alberta should create a favourable scenario to attain targeted return levels.
After WestJet’s pilots endorsed a new deal in late 2016 that allows for the expansion of the airline’s widebody operations, speculation grew about a potential aircraft order from the company in the not too distant future. But WestJet is taking a cautious approach to its widebody evaluations, as current capital expenditures could reach CAD920 million (USD703 million) in 2017 and investors are looking for definitive progress in restoring historical ROIC performance.