Airbus raises list prices on its line of jets by nearly 6 percent

Airbus raised the list prices of its current jets by 5.8 percent Friday and upped the price of its proposed A350-800 by 7.9 percent.

The A350-800, now listed at $225 million, is designed to compete directly with the 787-9, a stretch version of Boeing's Dreamliner that will follow the initial 787-8 model. The European manufacturer's list prices for two other A350 models, the -900 and -1000, also were increased 5.8 percent.

Boeing has not yet announced its 2010 pricing. In 2009, the 787-9 was listed at $200 million.

John Leahy, head of Airbus sales, said the hefty price increases were forced by "the continuing strength of the euro against the U.S. dollar and the ongoing financial challenges ahead." Airplanes are priced in dollars, but Airbus pays most of its expenses in euros.

Airbus also faces a cash squeeze because of production problems with both its A380 superjumbo and its military cargo plane, the A400M.