Airbus raises prices due to weak dollar, high metal prices
Toulouse, France - European aircraft manufacturer Airbus said Tuesday it would be raising prices across the board for its planes because of the weak dollar and the rising price of metal.
"On top of the 2.7 per cent normal escalation for the year 2007, the price increase comprises an additional 2 million dollars per single-aisle aircraft and 4 million dollars per wide-body, long range and A380 Family aircraft," Airbus said in a press statement.
The new pricing is to go into effect on May 1.
Airbus said the price increase, its first above normal escalation since 2003, was triggered by the weak US currency and the general rise in the world's raw-material prices, especially in regard to metal.
Airbus said the dollar has lost some 15 per cent of its value over the past 12 months, while prices for metal products, such as aluminium plates and stainless steel, have gone up by at least 6.5 per cent.
"Titanium, steel, aluminium, aluminium-lithium still account for at least 40 per cent by weight in modern aircraft design," Airbus said. (dpa)