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Posted on Wednesday, 27-January-2010 at 16:10 GMT.
Related Categories: Comfort and Health, Passenger Value, Service
Related Categories: Comfort and Health, Passenger Value, Service
Air New Zealand is unveiling a lie-flat seat option for customers in economy on its longest flights. Yes, you heard it right – lie-flat seats in economy. Before you get visions of the shell-type, ultra private individual seats you pass by in premium classes, the lie-flat seat configuration needs to be explained further. On its newest Boeing 777 widebody aircraft, Air New Zealand will be taking the first eleven window rows in economy and outfitting the trio of seats with a footrest that can be raised to seat level. When all three seats are reclined and footrests elevated, the configuration allows two adults to lie flat across the three seats. Of course the question comes up: "what size adults are we talking about?" Well, here's a picture to help you answer that question.
Air New Zealand touts the seat configuration as their Skycouch and will charge extra for it. According to a press release from the airline, for two adults travelling, purchasing the Skycouch will be based on buying two seats at standard prices with the third seat at approximately half price. Full airfare details will be announced when it goes on sale from late April. The airline plans to introduce the seat configuration toward the latter part of 2010. The airline is also pleased by the demand for its Premium Economy class and is upgrading its seats and service to include shell-back seating with greater privacy, and the flexibility to angle the seats to appeal to couples or single travelers – all this for what amounts to a third more than the price of a standard economy ticket.
The focus on economy passengers, even if it's mostly on those who are willing to pay more, is indicative of an industry looking to protect itself from future dips in premium class travel. Airlines make the most money from high-paying premium customers. When that segment stays home, airlines have to make up the revenue difference. Enter the fee-for-all we've seen in recent times. Raising economy fares is risky, since an airline stands alone and is often forced to rescind fare hikes if competitors don't go along. Case in point: American Airlines' recent attempt to raise domestic U.S. fares. But, if an airline can offer the added value of greater comfort and better service in economy for a price that seems, well, fair, then it may have found a winning formula. Of course, the trick is to offer something better for economy passengers that won't dilute from the needed business class population. The true test will be when the industry recovers to the point that demand is very high again. Will the likes of the Skycouch survive, or will we return to a design inspired by something less appealing, like canned fruit? Time will tell. At least economy class is getting overdue attention on some airlines.
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