- Discounts for new airplanes commonly are 25%-30% whether built by Boeing (NYSE:BA) or Airbus (OTCPK:EADSF, OTCPK:EADSY), but a recent UBS research note reportedly suggests Boeing has discounted some of its new planes even more.
- Boeing is believed to be offering discounts of as much as 59% on its current 737, 54% on the 777, and 46% on the 787 Dreamliner.
- BA is able to offer steep discounts on 737s and 777s because the planes have been in production for years and have paid back initial design and development costs many times over, but 24/7's Paul Ausick says it cannot afford such cuts on the Dreamliner because the plane has not yet amortized the full cost of development, which has been reported to be as high as $32B.
- Boeing is reacting to comments from Airbus that the European aircraft maker can price its current version of the A330 up to 25% below the 787.
From other sites
at CNBC.com (Apr 9, 2015)
Video at CNBC.com (Mar 16, 2015)
at CNBC.com (Mar 12, 2015)
Video at CNBC.com (Mar 12, 2015)
at CNBC.com (Feb 23, 2015)
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