If there is a thread extant on this subject, would someone be kind enough to give me directions thereto? I cannot locate same. I was looking because a friend in Israel asked me [in all innocence] what do certain aircraft cost. I gave him the usual response - depends on who, what, why, where and when, plus other variables ... .

But. On Aero-News Network today on the new TK order for 5 x 777-300ER, it is noted that the order is worth 1.36 billions (1.38 billions in Aviation International News), a unit price of 276 millions. That 'fits' Boeing's ball-park figures of 257 - 287 per 773ER frame.

In another article at the same source today, in an update on the A380, a base price of 237 millions is quoted.

Just how far divorced from reality ARE sticker prices? Can we expect a 'civilian' to make any sense out of the above, which suggests that one can walk up and buy an A380 for less than the asking price for a 773ER? Maybe when all the planets are aligned in some arcane sequence, one can; but it is a credibility stretch, not so?

Boeing's info page give a price range of 257 - 287 millions for the 748i. If one were to venture to Chicago, cheque-book to hand, what sort of figures would one need to write for a 'standard' (say similar to LH specifications) 748i? Or, for that matter, a few 773ERs - say five - as well?

Might be cheaper to forget the 773ERs and the 748 altogether, and talk to the big A about 380s. Bigger is better. Isn't it?

In general, you can expect a narrowbody airliner to go out the door for around 35% off the manufacturer's published list price.

For a widebody, that rises to around 40-45% off published list.

It does, however, depend on the customer, the market, and the amount. I've seen widebody deals go out the door for over 60% off and I've seen them go out the door for under 25% off.

Then there is also the engine deals (negotiated separately) and all the ancillaries (training, spares, etc.). The ancillaries are hugely profitable (margins can approach 75%) so you can give up $100 million in revenue a frame on an airplane with a $250 million published list price and make back $50 million in revenue on the ancillaries for that frame, meaning the real "discount" is 20% and not 40%.

Thanks, Stitch; from your posts in general that is pretty much what I imagined the current situation to be. But I did want to have confirmation from somebody like you, to be able to reply to a friend with some assurance.
Thanks again!

No.

So many other factors beyond price/discount to consider: cost, ability to fill it, cost, availablity, costs, resale prospects, costs, more costs, etc

Does anybody pay 'list' price for a car these days ? Not in my lifetime.

The parallels are roughly the same, except on a far grander scale .. and as Conky points out, there are just so many variables and factors that contribute to how pricing is determined and arranged. Add to Freddie's list the following :

- History of carrier (is it a current, new airline or 'hold-out' opposition customer ?)
- Buyer profile : (private individual, new carrier, established - safest / largest / strategic - carrier etc)
- Volume of purchase and existing 'deals'
- Market position of the frame : Launch or existing type, need to compete against competition)
- Production situation (backlog, available production slots etc)
- Financing methods
- Government relations
- Configuration of the frame
- Ancillary deals (training, spares, associated buildings etc)
- prevailing economic conditions and 'cycle'

These are a subset and a very few considerations. But you can bet that major manufacturers such as Boeing, Airbus, Embraer, Lear, Cessna, etc each have their own individual matrixes to assess where a customer RFQ or order for a particular frame sits, which in turn will determine applicable pricing.

Thanks everyone! My original post and the questions - explicit OR implicit* - were satisfactorily answered by Stitch. I was seeking confirmation of my broad-based but not unlimited knowledge, to satisfy a query from a non-air-industry background friend. This I have done. Thanks again.

*including the penultimate and ultimate rxample in my original post.
PS::
I seem to remember that I posted this reply an hour± ago; if I am repeating, apologies.

In October 2007 Scott Hamilton (leeham.net) wrote that BA got it's A380s for a price between $130-150 million. The list price at the time was "in round numbers, $250 million".

The PDF containing this information disappeared from the web shortly after it was posted. Fortunately, I managed to save a copy.

Here I act contrary to intimated intent. So do we do, so often. But not, in my case at least I believe, in any inflammatory context. This is the inescapable position dictated - or demanded - by the very seminarial nature of the device. I am ever eager to learn but there are instances wherein I am averse to being taught. So does the notion perdure.

Apologies Errol, if you feel that the above posts / answers are somewhat didactic. I am sure that was not the intention of any. However, since we attempt to cater to our entire community of members, the above explanations may clarify the question for some, who may not be as informed or familiar with the concept or process as others.

All questions are of value - and sometimes, what appears as a basic question to one .. may be a complex issue for others, where an explanation is prized or clarifies.