PREMIUM AIR
MIXED MESSAGES
THE SEARCH FOR VALUE AND
THE HIGH QUALITY OF BUSINESS CLASS IS BEHIND THE SLOW DEMISE OF FIRST CLASS
Some buyers warn inconsistencies in premium economy standards mean the class is off the table for their travellers
THE SEARCH FOR VALUE means corporates are increasingly looking at premium economy as the product improves, but while it is attractive to some buyers, others have doubts. “We seem to be seeing a
The message of “value” in long-haul travel
is being pushed by the likes of Norwegian for its premium economy cabin. While flat beds are now the norm on full-service airlines, the unnecessary frills (the amenity kit full of combs, facial moisturising sprays and shaving foam that went unused, for example) have gone or are the preserve of first class. Instead, value, based on a playing field that is becoming increasingly level, is key, as Aer Lingus knows.
So confident is it of its business offering in terms of price point, premium economy is not on the agenda: “The right combination is a reasonably sized business class and a strong economy product,” adds Rutter. The search for value and the high quality of business class is behind the slow demise of first class, which has fallen from a 2 per cent share of global capacity in 2014 to just 1.2 per cent last year, according to OAG. The latest to dispense with it is Malaysia Airlines, which has rebranded First Class on Airbus A380s and A350s as the Business Suite. The package, offered on the London- Kuala Lumpur route, includes access to the first class lounge and all other perks, but at a reduced price. The carrier is aiming it at its frequent flyers and those barred from purchasing first class tickets. “Our target is to enable the frequent
flyer looking for enhanced comfort to now be able to enjoy a premium experience at competitive prices,” says the carrier’s chief executive Izham Ismail.
buyingbusinesstravel.com
lot more premium economy cabins, and this is positive for corporates given travel policies and traveller preferences,” says the travel manager of an international law firm, whose policy for flight durations under five hours is to buy the lowest “logical” economy cabin fare. “We will also advise against fully flexible tickets and insist that non-flexi tickets are booked for internal meetings, etc. This keeps costs down.” Another travel manager
with a lot of US and Asia business has an almost blanket premium econo- my-only policy. “Premium economy dictates which air- lines we work with because they don’t all have it,” says the buyer. “The cost of business class is a massive jump – it’s not something we have the appetite for.” This buyer also
another bugbear. “If you get the brand-new planes with BA, it’s great; if not, it’s inconsistent. Then there’s the joint venture issue, some partners don’t have premium economy, so we aren’t going to book it.” Another global buyer for a
high-tech company with an economy-only policy under six hours has a contrasting view. “We are just about to change our policy to allow more people to travel in business instead of premium economy. We made the mistake of stepping into the premium economy trap. We had major problems with it. “First, there’s product
inconsistency, especially across the Atlantic, with airlines like United and Delta offering “comfort” seats and confusing everyone, while others have true separate premium economy cabins. “Also, by driving business into premium economy we
Delta Air Lines’ Comfort Plus seating
points to another bugbear – the availability of a new cabin. “I’m very cautious when airlines roll some- thing out because of the timeframe it takes to deliver. People are getting savvy; they know what it should look like when they get on. Our staff come back and say it wasn’t the experience they were expecting and it makes me look like I don’t know what I’m talking about.” Inconsistencies among
individual aircraft and an airline’s partner carriers are
limited the competition. Towards APAC, most com- petitors that are attacking the expensive legacy carriers are not offering a premium economy product. “Last, premium economy
is, after first class, by far the worst quality-price ratio. We see premium economy tickets above €3,000 – ex- pensive for a product that is still not good enough to rest and sleep, and only in a limited way to work.”
2019 MARCH/APRIL 75
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