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Airbus announces price hike
Published on: 2010-02-02
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The European aircraft giant Airbus announced on Friday a price hike for all its aircraft that averages 5.8 percent. The price increase is the first since January 2008 and will take effect for all Airbus aircraft this year.

The price hike was triggered by the weakness in the US dollar and the higher price of raw materials and commodities.

“We have tried to keep prices down for as long as we can. However, even with record aircraft deliveries and impressive orders in recent years, the continuing strength of the Euro against the US dollar and the ongoing financial challenges ahead have forced us to take action,” John Leahy, chief operating officer for the customer division, said in a statement.

Airbus planes carry price tags in dollars, but the company pays its employees and other expenditure in Euros.

Last February, Airbus' archrival, Boeing, raised its list prices.

The Airbus increase will also began applying to A320s assembled by Tianjin-based Airbus China in January, said Tao Wenge, a spokesman for Airbus China.

The hike will not have a big impact on the domestic aviation industry since aircraft costs only account for one-fourth of an airliner’s expenditures, said Li Xiaojin, a professor at China Civil Aviation College.

Airbus delivered 498 planes in 2009, a record high that exceeded Boeing’s annual sales. Eleven A320 aircraft were assembled and delivered in its final assembly line in Tianjin, and the number is expected to reach 26 this year.

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