Airbus ups prices for jets

Airbus S.A.S. is going to raise jet prices due to weak dollar and high costs of materials.

Photo: Airbus ups prices for jets

The European aerospace concern announced its decision Tuesday to increase catalog prices adding extra $4 million to every price tag. This comes in addition to a 2007-planned increase of prices by 2.74 percent.

The increase constitutes only 1-3 percent of the previous prices. The new prices are to come in effect May 1.

In comparison with many aircraft manufacturers Airbus conducts transactions in dollars and every fall of dollar or rise of euro against each other costs the company billions of euros.

On the other side stands the increase of prices for metal products by 6.5 percent. On the part of buyers there exist some concerns about high oil prices and credit crisis.

In spite of this Airbus is limited in how much it can up prices because it's competing with Boeing Co., whose business is also based in dollars.

Photo: www.uncorrelated.com