Boeing raises list prices of all aircraft

Chicago, USA: Boeing Co has raised list prices about 5.5 per cent for all of its aircraft, including the 787 Dreamliner, citing reasons of increasing cost of labour and materials.

According to a Boeing spokesman, the price increase is "generally consistent with the inflation rate for manufactured goods." He mentioned that rising labour costs were a bigger factor in the price hike than the cost of raw materials, even though both played a part. The spokesman also said that the company generally raises list prices each year to keep up with costs.

With the price rise factored in a new 787 could now cost anywhere from US$146 million to $200 million, about six per cent higher than 2006 list prices, which ranged from $138 million to $188 million, depending on the model.

Prices for Boeing 737 aircraft will now range between $50- $85 million, as compared to 2006 prices of $47- $80.5 million. The 737s have so far racked up more than 7,000 orders after more than 40 years on the market.

Boeing says that it is on track to roll out the first 787 by July 8, and make delivery of the first plane for commercial service to All Nippon Airways next May.

So far Boeing has taken 634 orders for the 787.