High discounts in the jet industry
A look at the net value of Airbus SE’s orders suggests that it seems to be common practice for jet makers to give airlines discounts of about 50 percent. Based on the number and type of orders, Airbus SE’s order book was expected to be valued at over 324 billion euros; however, as the manufacturer recently revealed, aircraft orders were only worth about 33.3 billion euros. The high discount rates seemed necessary to retain important customers, including Emirates, Airbus’ largest A380 customer. After this airline converted part of the orders for A380 jumbo jets to the smaller and less pricy A330neo and A350 models, Airbus announced that the production of A380 planes would come to an end in 2021.
Who are the largest manufacturers of commercial aircraft worldwide?
In 2019, the Airbus Group raked in global revenue of around 70.5 billion euros, making it the world’s second largest jet manufacturer. Boeing was the largest jet manufacturer with global revenue of around 79 billion U.S. dollars.