Space/Science — HabitableZone

Space/Science » in reply to Planes are sold in dollars, so is the Airbus, while built in the Eurozone

re: Planes are sold in dollars, so is the Airbus, while built in the Eurozone

Not sure I see your point. How does this impact?

For the parts made for Boeing in asia, the manufacturing companies would go broke if they hadn't negotiated that what they get paid for a part (Japan does the wings? I think?) would fluctuate with the exchange rate. Think it through. If the dollar falls 33%, and if their contract did not adjust, they would be out of business really fast.

That increased cost will be written into the the sticker price of th planes. You bet. This will result in Airbus having less concern about the weakening dollar biting into their profits as Boeing undercuts them.

Airbus may sell its planes in dollars. but what symbol is placed on the window sticker has little to do. It costs what it costs.

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