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echo: barktopus
to: Phil Payne
from: George Sherwood
date: 2006-06-24 00:07:26
subject: Re: A380 price increase?

From: "George Sherwood" 

On Fri, 23 Jun 2006 22:07:28 +0200, Phil Payne wrote:

> "George Sherwood"  wrote in message
> news:449c3e76{at}w3.nls.net...
>> Delay deliveries, lose orders and raise the price?  What are they thinking
>> at Airbus?
>>
>> http://news.bbc.co.uk/1/hi/business/5109146.stm
>>
>> Airbus has increased the sale price of its A380 superjumbo, whose problems
>> have triggered a management crisis at parent company EADS.
>
> Aw, c'mon.  In B2B transactions NOBODY pays list price.  German slang for a
> mainframe computer price list is "Lgenblatt" - "sheet
of lies".
>
> Back in the early 1980s I worked for Itel, who leased Lufthansa's Jumbos to
> them.  One regular task was due diligence - any lease we signed was reviewed
> by as many competent people as possible - a process called "hunting the
> worm".
>
> Lufthansa's aircraft were of two types - straight passenger and combined
> passenger/freight "Kombis" for the South America flights.
>
> The acquisition prices varied by as much as a third within each group.  One
> of the Kombis in particular - bought new from Boeing - was not much
> over half the price of the others.

I understand that part, but from a marketing, perception issue, what is
management thinking?  Since no one pays it, why not leave it the same? If
you did you regular annual price increase with all models but the A380
seems to me it would send a much better message.

George

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