How Much Does an Airbus A320 and Boeing 737 Cost?

The recent claim by an online seller and vlogger on a talk show, stating her business makes around PHP 5 million (USD 90,106.00) to PHP 13 million (USD 234,281.00) per day, is quite intriguing. This suggests a monthly income of at least PHP 150 million (USD 2,702,921.00), according to her claims. While I cannot confirm or deny the authenticity of these figures, it does raise an interesting question: if someone were making that much money from an online cosmetics business, could they potentially buy planes? If you were to consider setting up an airline and purchasing aircraft like an Airbus A320 or a Boeing 737 with that amount of money, the cost of the planes would be a key consideration.

As of my last update in April 2023, the list prices for the Airbus A320 and Boeing 737 were as follows:

• The Airbus A320neo had a list price of around USD 110.6 million.
• The Boeing 737 MAX 8, a comparable model to the A320neo, had a list price of about USD 121.6 million.

The Airbus A320 and Boeing 737

The Airbus A320, a staple in many commercial fleets, has a starting list price of around $101 million for a base model, as per the manufacturer’s press release dated January 2018. This price, however, can escalate with additional features and customizations. In contrast, a used A320, which might be more budget-friendly for some airlines, averages around $25 million, influenced by factors like age, condition, and maintenance history.

The A320neo series, an upgrade with more efficient engines and improved aerodynamics, starts at approximately $110.6 million. Despite the higher upfront cost, the long-term savings in fuel and maintenance often justify the investment.

Boeing’s offerings in the narrowbody market include the 737-700 at $89.1 million and the 737 MAX 7 at $99.7 million. The MAX 8, a step up in the series, is priced at $121.6 million, with the high-density MAX 8200 version, preferred by budget carriers, slightly higher at $124.8 million. The larger MAX 9 and MAX 10 models are priced at $128.9 million and $134.9 million, respectively.

Understanding the Pricing Dynamics

The listed prices for these aircraft are averages, as airlines have a range of options and configurations that can significantly impact the final cost. These options range from increased fuel capacity to different seating layouts.

It’s important to note that the actual price paid by airlines often deviates from the list price. Factors such as design weights, engine choices, customization levels, and the scale of the order play a crucial role in the final negotiation. Larger orders typically see significant discounts.

List Prices of Other Planes

So, I decided to also check the list prices of other planes, including general aviation aircraft. Here they are:

• Single-engine aircraft:
  • Cirrus SR22T: Starting at around $650,000
  • Cessna 172: Starting at around $350,000

• Twin-engine aircraft:
  • ATR 72-600: Starting at around $65 million
  • DHC Dash 8-400: Starting at around $30 million
• Narrow-body airliners:
  • Airbus A220: Starting at around $75 million
  • Embraer E190: Starting at around $40 million

The Cost of Used Aircraft

The price of used aircraft depends on various factors, including age, flight hours, maintenance history, and overall condition. Generally, used aircraft are significantly less expensive than their brand-new counterparts. However, it’s essential to conduct thorough inspections and assessments to ensure the aircraft is in good condition and meets safety standards.

Key Considerations in Aircraft Purchasing

When buying an aircraft, whether it’s a brand-new Airbus A320, a Boeing 737, or any other model, several factors must be considered:

1. Aircraft Type and Size: The choice between narrowbody and widebody aircraft depends on the intended use and routes.
2. New vs. Used: New aircraft offer the latest technology and efficiency but at a higher cost. Used aircraft can be more budget-friendly but may come with higher maintenance needs.
3. Customization and Configuration: Custom features and specific configurations can add to the cost but may be necessary for certain operational needs.
4. Fuel Efficiency: Newer models like the A320neo offer better fuel efficiency, which can lead to long-term cost savings.
5. Maintenance and Operating Costs: The overall cost of ownership of planes, especially the Airbus A320 and Boeing 737, includes maintenance and operational expenses, which vary between aircraft models.
6. Market Demand and Resale Value: Some aircraft models have higher demand and better resale value, impacting the total cost of ownership.

Purchasing an aircraft, particularly an Airbus A320 or a Boeing 737, is a significant investment, requiring careful consideration of various factors such as cost, efficiency, and operational needs. While list prices offer a starting point, the final cost often depends on negotiations and specific requirements.

So, if I indeed had that amount of money, perhaps I would purchase a Cirrus SR22T for personal use. However, it’s important to remember that buying a plane is quite different from buying a car, as there are many other cost factors to consider.