Recession Trend: Premium Economy - Continental and US Airways Members: Keep Air New Zealand on Speed Dial for International Flights

March 2010
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Air New Zealand, a Star Alliance partner, is embarking on a major upgrade of its Premium Economy class cabins, starting in November or early December on B777-300ERs from Los Angeles to Auckland and onward to Sydney. (Los Angeles- London service will have the upgrades by April 2011.)

Continental and US Airways members have the opportunity to book Air New Zealand’s new, improved Premium Economy seat to Europe and the South Pacific (neither carrier offers its own Premium Economy), while also earning substantial mileage bonuses: Continental members earn 150% Elite Qualifying Miles and US Airways members earn 25% more accrued miles.

The Seat and OnBoard Service

Spaceseat is the name of the new Premium Economy product, a fixed-shell design that is similar to some airlines’ Business Class seat. Arranged in a 2-2-2 configuration (current arrangement is 3-3-3), It’s wider than Air New Zealand’s current Premium Economy seat (20 inches vs. 17.8 inches). Service changes include meals and snacks on demand, and onboard wine tasting.

Skycouch is Air New Zealand’s attempt at a lower level Premium Economy cabin, with three economy seats in a row that can be turned into a flat surface by fully retracting the armrests and snapping the leg-rest panels into place. The seats occupy the first eleven rows of economy, and the carrier is pitching them to couples who purchase the entire row. Onboard services are the same as standard economy.

Cost and Booking Procedure

Spaceseat: The booking code for Premium Economy is A and there is no advance-purchase requirement. Sample fares: Los Angeles to Auckland is about $2,499 (plus taxes), and Los Angeles to London starts at about $1,330.

Skycouch: You must purchase three economy seats. Two are sold at standard prices and the third at approximately half price. Price details won’t be available until April, but an average non-promotional economy fare on Air New Zealand from LAX to Auckland is currently about $1,300. Based on that, Skycouch comes to around $3,250 ($1,625 per person).

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