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Aircraft Prices Vary Between Different Customers?  
User currently offlinePart147 From Ireland, joined Dec 2008, 519 posts, RR: 0
Posted (5 years 7 months 4 days 15 hours ago) and read 2068 times:

After reading this ...
http://www.portfolio.com/views/blogs...ow-much-do-your-planes-really-cost
...it got me thinking. If I read the story right, both A and B sell aircraft to an airline at an acceptable price that both manufacturer and airline are 'happy' with. This seems to be why they treat the final prices as secret and don't generally publish them for all to see.

But that seems a bit odd to me - doesn't it make more sense - as well as being a much fairer system - if in addition to the basic price being published, it's linked to inflation and currency changes, what is offered is what you pay, even including the 'buy 9 aircraft, get one free' financial incentives - cumbersome yes, but certainly fairer.

Maybe my brain is just not hard-wired for profit in that way, to squeeze the last cent out of somebody doesn't make sense to me, but maybe one of you could help me understand it!

After all, if you sit beside someone on an aircraft and find they have paid less for their ticket than you did for the exact same flight, it would  irked  you, wouldn't it? I think airlines would react the same way regarding the final cost of an aircraft


It's better to ask a stupid question during training, rather than make a REALLY stupid mistake later on!
4 replies: All unread, jump to last
 
User currently offlineAustrianZRH From Austria, joined Aug 2007, 1400 posts, RR: 0
Reply 1, posted (5 years 7 months 4 days 14 hours ago) and read 2044 times:



Quoting Part147 (Thread starter):
But that seems a bit odd to me - doesn't it make more sense - as well as being a much fairer system - if in addition to the basic price being published, it's linked to inflation and currency changes, what is offered is what you pay, even including the 'buy 9 aircraft, get one free' financial incentives - cumbersome yes, but certainly fairer.

See it like that: if you go to your local VW dealer and buy a car, I can almost guarantee you you won't pay list price for your new Golf. Depending on your skill in negotiating, you'll get some 1000 EUR off the list price. But the car dealer most certainly won't go telling around your rebate, as he can maybe find someone not negotiating as hard as you do and sell the Golf for a higher price. Now multiply the involved prices by 10,000 and you're talking about planes.

Just my  twocents .



WARNING! The post above should be taken with a grain of salt! Furthermore, it may be slightly biased towards A.
User currently offlineEnginebird From United States of America, joined May 2007, 344 posts, RR: 0
Reply 2, posted (5 years 7 months 4 days 14 hours ago) and read 1990 times:



Quoting Part147 (Thread starter):
After all, if you sit beside someone on an aircraft and find they have paid less for their ticket than you did for the exact same flight, it would irked you, wouldn't it?

Which is the rule rather than the exception. Ticket pricing is such a complex matter and depends on a myriad of parameters and rules, just like buying aircraft and many other things.


User currently offlineTomFoolery From Austria, joined Jan 2004, 529 posts, RR: 2
Reply 3, posted (5 years 7 months 4 days 13 hours ago) and read 1942 times:

There are so many other things that go into these factors.

What are the finance terms?
Maintenance contracts over a particular term?
Are engines bought or leased, or is there a service agreement?
How many are you buying?
What is the market at the time (buyers market/sellers market)?
How easy is for the manufacturer to provide your airframe to you?
Is there a chance that "the other guy" may entice you to buy his product?
The customer's value to the seller.

ILFC will have alot more purchasing power purchasing several dozen airframes than some small airline buying just a few airframes. Neither ILFC, nor the seller will ever disclose the final price, or the details, of the purchasing conditions under which the aircraft was sold.

Generally, nobody pays the list price, which is bare (no engines in most cases), no interier, no paint, no fuel, no F/As or training, no bev carts, no toilets, no plumbing, nothing. Everything is extra. Like Ryan Air.

This is all before you start making concessions...



Paper makes an airplane fly
User currently offlineAirNZ From , joined Dec 1969, posts, RR:
Reply 4, posted (5 years 7 months 4 days 9 hours ago) and read 1724 times:



Quoting Part147 (Thread starter):
After all, if you sit beside someone on an aircraft and find they have paid less for their ticket than you did for the exact same flight, it would you, wouldn't it?

No, because it simply doesn't work that way and ticket prices have great complexity. It's simply not a clear-cut matter of flying on the "exact same flight".


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