LyrArc Article Gist
Boeing is working out pricing on its new 777X jet to include the fuel efficiency savings made by airlines using the new aircraft. The new plane would save 20% more fuel per seat than the current 777 jets. Airlines spent $210 billion on fuel in 2012. About half the cost of a long range flight is on fuel.The Dreamliner price is at about $290 million. The 777X could be priced around $400 million, with discounts bringing this down to above $200 million for the 400 seat aircraft. Earlier pricing efforts by Boeing on the 787 Dreamliner were based on manufacturing costs going down with a significant portion of work done by suppliers. After problems in manufacturing, supplier issues and the learning curve, Boeing will take a more conservative approach to pricing this time without the steep discounts in earlier periods. In pricing the A320neo EADS passed on half of the fuel efficiency savings to buyers, and only half added to the price.