ANALYSIS: Boeing faces pricing pressure as Airbus encroaches
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July 11, 2019 - by JON HEMMERDINGER for flightglobal.com
Market values for several top-selling Boeing commercial aircraft continue to face downward pressure amid a convergence of factors that include record-low aircraft lease rates, cheap fuel and fresh competition from Airbus.
Airbus faces some of the same pricing headwinds and is likewise offering significant discounts on some aircraft types, say market analysts.
But observers describe pricing pressures as both adding to and partly reflecting broader challenges faced by the US airframer.
They see Boeing's path forward as uncertain but suggest the Chicago-based company could rebound by getting the 737 Max airborne again and launching the proposed New Mid-market Airplane (NMA).
On 1 July, FlightGlobal affiliate Ascend by Cirium reduced its estimated value of a new 737 Max 8 by 5%, to $46.7 million from 49.1 million. Ascend values a new A320neo at about $49.1 million.
Ascend stresses the 737 Max value reduction does not reflect the Max grounding, but rather existing market forces...