Buy Used Airplanes - Aviation Business Blog

India is currently undergoing an aviation boom, with a host of new players in the game.
Kingfisher Airlines, Indigo Blue, Deccan, Jet Airways, Spice Jet are among the relatively new entrants that are entering the fray with new aircraft, superior service and competitive prices.

The fleet of the merged Air India-Indian Airlines entity is aging and needs new aircraft in order to compete. They have already placed an order for 111 planes worth over $10 billion. However, new analysis suggests that they may need 60 more aircraft.

Of these, at least 30 are likely to be wide bodied aircraft for which the options are Boeing 747, 777 and 787 apart from the Airbus A310 and Airbus 330s. For the narrow bodied aircraft, the options are Boeing 737 and the Airbus 320 family.

Either way, this is good news for both Boeing and Airbus, and of course the air traveller’s in India.

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In order to cover the growing costs of materials and labor, Boeing announced today that it was increasing its list prices for all of its airplanes by 5.5%.

The price increases includes the 787 Dreamliner set to be introduced next month. The cost of a Dreamliner is expected to increase from $146M to around $200M by this Thursday.

Boeing spokesman Jim Condelles said that the price increase is “generally consistent with the inflation rate for manufactured goods”.

Going on past record, Boeing does increase its list prices every year. However, the latest annual increase seems to be much higher than Boeing’s 10-year average of 4.5 percent, Bloomberg News reported, quoting Boeing spokesman Jim Proulx.

Prices for Boeing 737s, which have racked up more than 7,000 orders in over 40 years on the market, jumped to $50 million to $85 million, from a range of $47 million to $80.5 million in 2006.

Boeing’s list prices are generally based on different configurations for each type of aircraft.

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Airbus appears to have landed firm orders for 425 aircraft, with a further commitment of 303 aircraft at the Paris Air Show.

Boeing’s count for firm booking’s at this stage seems to be 66 jets.

Airbus secured agreements for 728 aircraft during the Paris Air Show after landing firm orders for 425 and commitments for a further 303, eclipsing Boeing’s firm booking of 66 jets.

Airbus has tended to reserve order declarations for the flagship French show, and the company has been particularly keen to offset last year’s poor publicity regarding delays to its A350 and A380 projects.

Get more details about the break up of the orders by customer base and aircraft type here

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