|Quoting Zvezda (Reply 69):|
Quoting Art (Reply 61):
Does that imply that Airbus expect to sell an A380 for marginal cost of production ($115 million) plus $40 million profit ie at a price of $155 million? Will that be the price that an airline will pay? That's near as dammit list price -45%
More or less, it implies that is about the average an airline will pay. The figure is unsurprising.
Art, I've a suspicion that the $115m (or whatever the real number is) is an "Airframe only" figure, i.e. the price of the engines will have to be added in.
I've also a suspicion, but will happily be corrected, that "list price" includes typical prices for the engine options.
Thus we (I suspect) see "huge" discounts quoted that aren't quite as "huge" as they would otherwise appear to be.
(Suspicious, aren't I?
Bear in mind also the expression "marginal" cost.
I infer from that phrase that this is the cost of adding an additional
frame into the production process, thus spreading already committed overhead costs over more frames.
(higher turnover always reduces unit cost up to a the capacity limit)
The "average" cost will be higher, and from memory, the MS
quoted puts the "average" at c. $140m-$145m, after related overheads and depreciation are added.
I, along with others, am guilty of using "fixed" numbers in terms of cost and profit, to describe a situation where, in reality, the cost, and profit in fact vary somewhat almost week by week, as certain dependencies/influencing factors change.
e.g because of overhead cost recovery, and similar variables, adding, for example, A330's at "cost" into a particular year's production, may well increase the "profit" on A380's and A320's sold in that year.
Conversely, the cancellation of some of that year's A380's would make that year's A320's and A330's "cost" more.
I would expect the manufacturers to base their negotiations with airlines, and thus their "walk-away" price, on forecasts of throughput for the year's in which deliveries are to be made.
This is one of the reasons why the A380 delays have such a big impact on Airbus cashflow and profit in the years 2007 - 2009.