Just over a week ago, we noted that an Iranian government official said that Iran Air’s order for 80 new commercial jets from The Boeing Co. (NYSE: BA) would not cost the $16.6 billion list price, but only about half that amount. Iran Air’s CEO also said that the airline’s order for 100 planes from Airbus Group SE valued at $18 to $20 billion would, in fact, cost no more than $10 billion.
Commercial airplane prices are negotiable, especially for large customers making large orders. And we’re looking at a buyer’s market right now, especially for widebody jets, so new orders are likely to do better than the usual 30% to 40% discount to list prices.
For Boeing, which did not raise list prices in 2016, reducing its costs has helped make up for the larger discounts. We can expect continued cost cutting from Boeing, both from layoffs and from squeezing suppliers.
Here’s Boeing’s current price list by aircraft family.
737 Family
737-700: $80.6 million
737-800: $96 million
737-900ER: $101.9 million
737 MAX 7: $90.2 million
737 MAX 8: $110 million
737 MAX 200: $112.9 million
737 MAX 9: $116.6 million
747 Family
747-8: $378.5 million
747-8 Freighter: $379.1 million
767 Family
767-300ER: $197.1 million
767-300 Freighter: $199.3 million
777 Family
777-200ER: $277.3 million
777-200LR: $313.8 million
777-300ER: $339.6 million
777 Freighter: $318.7 million
777-8: $371 million
777-9: $400 million
787 Family
787-8: $224.6 million
787-9: $264.6 million
787-10: $306.1 million
Boeing is seeing a resurgence in military aircraft orders, and that is good news for the company as it tries to make up for the slowdown in commercial jets. Not only is the U.S. Department of Defense buying more, but foreign governments from Canada to Qatar are spending as well.
24/7 WALL ST.
