Airbus increases prices of aircraft

Airbus, the European aircraft manufacturer, has raised prices across its range of aircraft, blaming higher metals prices and the weakness of the US dollar.

The list price of single-aisle planes has risen by $2 million (Dh7.34m) from yesterday while wide-body, long range and A380 aircraft have gone up by $4m on top of the annual rise of 2.74 per cent, the BBC website reported.

Prices paid for aircraft vary based on the specifications of the aircraft and also the deal reached by the airline. The average price for an A380 is $327.4m, while an A320 is $76.9m, it said.

"We have to keep pace with the world market price developments and secure profitable deals," said John Leahy at Airbus.

Airbus is not the only company to have problems, and its US rival Boeing is struggling with its 787 Dreamliner aircraft, announcing another major delay last month.

Boeing's new plane takes advantage of technology that allows much of it to be made of plastic composites instead of aluminium, which means it is lighter and, Boeing claims, will consume 20 per cent less fuel than others.

However, the 787 is now about 15 months behind its original schedule, with the first flight due in the fourth quarter of 2008.

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