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You are here: Home  >  Travel Magazine  >  Executive Travel  >  Travelers Briefing  > Travelers Briefing Breaking through the class barrier 061206.
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Breaking through the class barrier



December  2006

Here’s a truth universally acknowledged: flying cattle class is a test of endurance rather than enjoyment. The days when airlines trumpeted extra legroom or amenity kits in economy are long gone. No, in these tight-fisted days, it’s a pile ’em high, sell ’em cheap philosophy, packing us in like sardines, with escape to Business or First Class only for the well-heeled or corporate elite. 

So when Virgin plugged the gap in 1992, launching a middle class with extra space and pampering, it instantly won not only the hearts of business travellers but also the minds and budgets of their accountants. This third way has  been a runaway, or rather a runway, success. It’s now available on around a dozen airlines and has created a battleground worth nearly US$1 billion a year.

Flying Premium Economy typically offers 38 to 42 inches of legroom, five to seven inches more than zoo class, at about one-third the price of a Business Class seat. Crucially, it permits business travellers to work and bypass bawling babies and inebriated idiots and get on with some work.

But now the stakes have been raised. In September, Virgin announced a £12 million revamp of its Premium Economy brand, aiming to seize a further 10% of this lucrative market by unveiling the largest seats of its class. With a pitch of 38 inches and a width of 21 inches, they’re not only wider than those of competitors, but also head of BA’s Club World.

With a product far more akin to Business Class than Economy, Virgin’s Premium Economy passengers benefit from a dedicated check-in, separate cabin, priority boarding and quicker baggage reclaim. The new service also includes a dedicated cabin crew, and redesigned in-flight meals and amenity kits.

Between 2000 and 2005, the number of Virgin Premium Economy passengers systemwide soared 56% year on year, and all the indications point to further growth. As a result, Virgin has boosted the number of seats in the cabin by one third in the past 18 months. There are now 58 on aircraft flying from Gatwick and between 28 and 38 out of Heathrow. 

Furthermore, Anna Knowles, Virgin Atlantic’s communications manager, says sales of Upper Class seat have not been affected. “The increase in Premium Economy has been due to an increased number of leisure travellers trading up, rather than business travellers in Upper Class trading down,” she says. “In terms of the split of leisure and business passengers, from Gatwick it is around 50/50, while from Heathrow there is a slightly higher  proportion of business travellers.”

Within months of Virgin’s Mid Class launch in 1992, Taiwan-based Eva Air began offering a Premium Economy cabin, Evergreen Deluxe, (since renamed Elite Class on Boeing 777s) for full-fare passengers, with enhanced seating and service. This was swiftly followed by British Airways’ World Traveller Plus and United’s Economy Plus. Now Air New Zealand, ANA, BMI, SAS, Garuda Indonesia, Vietnam Airlines and Thai Airways (on certain flights) all offer an enriched Economy product.

Virgin’s relaunch, supported by a US$3.8 million UK advertising campaign, undoubtedly puts pressure on arch rival British Airways’ product. BA offers Premium Economy travellers a 38-inch seat pitch, a dedicated cabin, priority meal service (but not an upgraded meal), in-seat power and telephones, on-line check-in, (but no  dedicated desk), and fast baggage drop.

BA says its World Traveller Plus passengers are often self-employed or work for small-to medium sized businesses or are leisure travellers seeking extra comfort.

SAS has also seen strong demand for its Economy Flex. Bookings were up by 20% in the past few months of 2006 compared with 2005, the product providing priority check-in with considerable extras, but costing twice the economy fare.

Air New Zealand has expanded the number of Pacific Premium Economy seats on international Boeing 747 flights, claiming an average 80% load factor, rising to 95% at peak periods.

The airline’s 15 economy seats at the front of the main cabin have been replaced with eight Premium Economy seats with a 39-inch pitch.

ANA gives an extra four inches of legroom over its economy seat, well worth it for long routes and with the bonus of access to business lounges at Narita and Heathrow airports.

Despite the boom in Premium Economy, the only US carrier to join the middle class is United Airlines. Unlike other carriers, the class is offered on a seatavailability basis and costs no more than an economy class ticket. But it is only open to its Mileage Plus Premier members or full-fare paying passengers.

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