The pricing problem in commercial aerospace may indicate a need for airframers to reassess their pricing strategies, which could lead to increased profitability and reduced cyclicality. This suggests that Boeing and Airbus may need to focus on value-based pricing to capture the value they create for the world.
Airframers Struggle With Value-Based Pricing Strategies
The commercial aerospace industry is facing a pricing problem, with most large aircraft programs failing to deliver a positive return on investment. According to Scott Mikus, director of aerospace and defense research at Melius Research, airframers have not given enough consideration to pricing their products properly, leading to excessive discounting and low profit margins. This article was first reported by Aviation Week.
The pricing problem in commercial aerospace may indicate a need for airframers to reassess their pricing strategies, which could lead to increased profitability and reduced cyclicality. This suggests that Boeing and Airbus may need to focus on value-based pricing to capture the value they create for the world.
Airframers Struggle With Value-Based Pricing Strategies
The commercial aerospace industry is facing a pricing problem, with most large aircraft programs failing to deliver a positive return on investment. According to Scott Mikus, director of aerospace and defense research at Melius Research, airframers have not given enough consideration to pricing their products properly, leading to excessive discounting and low profit margins. This article was first reported by Aviation Week.