Airliner Price War Under Way

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Key Takeaways:

  • Airbus and Boeing are offering significant discounts, up to 15%, on their A320neo and 737 MAX jets as part of a "summer sale" to attract orders from airlines seeking fuel-efficient aircraft.
  • Both manufacturers have accused each other of instigating a "price war" to gain market share for what will be their primary narrow-body offerings for decades.
  • Boeing is aggressively pursuing orders, aiming to secure 1,000 aircraft orders by the upcoming Farnborough Airshow, in an effort to counter Airbus's current lead of 1,425 orders for its re-engined A320.
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Airbus and Boeing are having a summer sale to shore up orders as airlines all over the world continue shopping for fuel-efficient jets. According to Reuters, both manufacturers are knocking up to 15 percent off the list price of their A320neo and Boeing 737 MAX designs, which will be the bread-and-butter airplanes for the next few decades. Each has accused the other of waging a price war.

The issue has apparently dominated the hallway discussions at the International Air Transport Association meeting in Beijing, where Boeing seems determined to set Airbus back on its heels after a poor showing at last year’s Paris Air Show. With Farnborough coming up in a few weeks, Boeing is reportedly intent on firming up orders for a staggering 1,000 aircraft by the time the British show is over. As it stands now, Airbus has 1,425 orders for the re-engined A320.

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