Airbus raising plane price $4M

Geneva, Switzerland -- The falling value of the U.S. dollar has prompted Airbus to consider raising the price of its A380 by up to $4 million, the French aircraft maker said.

The price increase is also blamed on increasing costs of steel and aluminum used to make airplanes, The New York Times reported Tuesday.

"We have to keep pace with the world market price developments and secure profitable deals," said John Leahy, chief operating officer for customers at Airbus.

Airbus' parent company -- European Aeronautic, Defense and Space -- has sought to diversity its holdings as a way to lessen pressure from a weak dollar, it said.

To that end, the company announced Tuesday it would buy a California company, PlantCML, which specializes in security systems, for $350 million.

The dollar has lost about 15 percent of its value against the euro in the last year, while metals prices have increased by at least 6.5 percent, Airbus said in a statement.

Copyright 2008 by United Press International.