Boeing is to undercut rival Airbus in the mid-sized widebody market with a bargain price for the 7E7 Dreamliner.
Speaking at Asian Aerospace yesterday, Randy Baseler , Boeing Commercial Airplanes vice-president of marketing, revealed that the 7E7 will be offered at a price that compares favourably with today's mid-sized widebodies.
This is despite the fact that the new aircraft will offer 20% better performance.
Baseler said the catalogue price of the 7E7 will be "in the ball park" of the 767-300ER. Boeing lists this as $115.5 million-$127.5 million.
In comparison, the A330-200, the closest Airbus type to the 7E7, has a list price of $142 million.
Thomas Waggener, 7E7 director of marketing, says the manufacturer has only just decided on how much the 7E7 will cost, adding that airlines have been "pleasantly surprised" at the 767-comparable price tag.
Traditionally a manufacturer adds a price premium to a new airliner that offers an increase in performance, he says, and airlines were "increasingly of the mindset that Boeing was going to increase the price" of the 7E7.
However, "airlines will get all the new capability at a price similar to today's aeroplane," says Waggener. The decision on the pricing philosophy for the 7E7 was to find a "balance between whether to sell a few airplanes at a high price or a lot at a low price", he adds.
"Boeing is recognising what is needed in the marketplace," says Waggener. Airlines are under intense yield pressure in a tough air transport environment.
The decision will produce a "better business case, help airlines more and add all the value features - we will sell more airplanes that way", he says.
MARK PILLING
Source: Flight Daily News
