Boeing raises list prices by 5.5 pc

Boeing Co has raised list prices about 5.5 per cent for all of its airplanes, including the 787 Dreamliner set.

Boeing Co has raised list prices about 5.5 per cent for all of its airplanes, including the 787 Dreamliner set to debut next month, to keep up with the costs of labour and materials.

HT Image

The price increase is "generally consistent with the inflation rate for manufactured goods," according to Jim Condelles, a Boeing spokesman.

He said rising labour costs were a bigger factor in the price hike than the cost of raw materials, though both played a part in the company's calculations.

Condelles said the company generally raises list prices each year to keep up with costs.

As of last on Thursday, a new 787 could cost anywhere from $146 million to $200 million, about 6 per cent higher than 2006 list prices, which ranged from $138million to $188 million, depending on the model. Prices for Boeing 737s, which have racked up more than 7,000 orders over more than 40 years on the market, jumped to a range of $50 million to $85 million, from a range of $47 million to $80.5 million in 2006.

Boeing's list prices, based on different configurations for each type of aircraft, are considered the starting point for negotiations with airlines.

The aircraft maker is on track to roll out its first 787 by July 8. Test flights are slated to begin around the end of August, and the company is set to deliver the first plane for commercial service to All Nippon Airways Co next May.