Boeing Co. has raised prices on its commercial planes by almost 6 percent on average, as the cost of its raw materials increases.
The world's biggest-selling plane maker, which is a major buyer of aluminum, titanium and carbon fiber, said the price hike was in line with the general inflation rate for manufactured goods.
Boeing posted its revised price list on its Web site (http://www.boeing.com/commercial/prices/) on Thursday, showing an average price increase of 5.6 percent.
Its hot-selling 787-8 Dreamliner, for example, is now listed at $157 million to $167 million, depending on configuration. The previous price range was $148 million to $157.5 million.
Airlines and plane lessors never pay the full list price for an airplane, with significant discounts for large orders, but the price hike signals Boeing's intent to start negotiations at a slightly higher level.
At last week's Paris Air Show, industry analysts said Boeing and European rival Airbus were discounting the prices of planes more heavily than usual to secure key orders.
A Boeing executive at the show said the company was happy with where we are at on pricing.
It's a bit of a misnomer that competition between us and Airbus is the driver of price in the industry, Boeing's Mike Bair, the head of its 787 program, said at a press conference at the air show. What you are willing to pay for a ticket is what drives the price of the airplane.
Boeing is enjoying strong demand for most of its planes, and is sold out for delivery for the rest of this year and 2008. Customers making orders now would have to wait until 2014 for a 787.