The Rise of Premium Economy

July 2008
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The in-between cabin continues to expand; why it may be the best option for some long-haul flights.

Every survey shows that if air travelers could wave a magic wand they’d make economy class more comfortable (but not more expensive). There have been two primary movements to make this happen: one has been a prominent flop so far; the other is a quiet success (so far).

The former is the all-Business Class trend, most of which has fallen victim to high oil prices and the legacy carriers’ relatively lucrative loyalty programs. The latter is Premium Economy Class, which only grows in popularity each year, as cattle class is incresingly dire.

In fact, Premium Economy (PE) was designed for long-haul flights—you get a little more legroom and an ounce more privacy for significantly less than the cost of Business Class. It was pioneered by Virgin Atlantic and EVA Air in the early nineties, and taken up by other international carriers—mostly Premium Service Carriers (PSC) like British Airways and Air New Zealand. Yet Premium Economy is still far from a standardized product. There is real Premium Economy—a separate cabin with seats that outperform economy—and PE Lite, in which several rows of economy class seats are spaced out a little more or exit row seats are offered for an additional charge. The lure of Premium Economy on international routes is a seat nearly as good (if not better) than many domestic US First Class seats, at a far lower fare.

[aside headline="Premium Economy Service in 2005" alignment="alignright" width="half" headline_size="default"]

By my count nine major carriers offered the service three years ago: Air New Zealand, All Nippon, British Airways, EVA, Scandinavian Airlines, Singapore Airlines (which has now abandoned it), Thai, United (kind of), and Virgin Atlantic.

New Additions: 31% Increase

Air France (2009) • BMI • Japan Airlines • OpenSkies Qantas • V Australia

[/aside]

US carriers have been late to the party (again) when it comes to Premium Economy. Not a single US carrier offers a true PE experience, whereas Virgin Atlantic, a PSC, is on its second round of PE seats and last year tore out about 50 economy seats to enlarge the Premium Economy section. Among US carriers, United leads the charge giving the first 5 to 10 rows of economy across its entire fleet five more inches of legroom. Priority is given to elite members of Mileage Plus. Seats can be purchased at the gate, online up to 24 hours prior to departure, and as a one-year pass ($349) valid for you and a companion.

The question is: Will the rise of Premium Economy lead to the fall of Business Class? No. Unlike the rise of Business Class, which rendered First Class much less necessary, Premium Economy will draw a few out of Business Class (during softer economies), but will attract many economy class travelers who can’t justify the expense of Business Class.

The Latest

Asia: Japan Airlines launches service from New York to Tokyo in August, claiming to offer the same amenities as Business Class, with seats that are as good or better in many respects as those you’ll find in some older Business Class cabins.

Europe: OpenSkies, BA’s new subsidiary, has launched New York-Paris service with Premium Economy seats that recline to 140 degrees (only seven degrees less than United’s B767 Business Class seat), and with only 13% less legroom than many Business Class seats. BMI: Rather than ditching its older Business Class seats when it installed new ones, it put them in Premium Economy on a couple routes.

South Pacific: V Australia, a new airline from Virgin Blue, will offer Premium Economy service from Los Angeles to Australia starting mid-December. Qantas also has just announced plans to bring its new Premium Economy product to the US market, starting mid-November.

Domestic “Enhanced” Economy Offerings

Delta: Starting at $5 per flight segment (based on distance) for front and exit row seating.

JetBlue: Preferred seats (extra legroom) cost $10 and up per flight (similar to United’s longstanding Economy Plus program).

Northwest Coach Choice: Exit, aisle, and window seats can be reserved for $5-$35 at check-in on nwa.com or at the airport. International seats are $50 for trans-Pacific and eastbound trans-Atlantic routes, and $25 from Japan to other Asian destinations and Hawaii.

United Economy Plus: The same seats with five more inches of legroom. They are assignable to Mileage Plus elite members and a companion, through the Elite Access program, and at the gate or 24 hours prior to departure via United’s web site.

US Airways Choice Seat: Allows coach passengers to reserve an aisle or window seat in the first few rows of economy. Cost: $5 per flight segment. Free for Dividend Miles Preferred members and companions traveling on the same reservation.

How to Work Premium Economy

Accustomed to Business Class? Temper your expectations and you’ll have a better chance of being satisfied. (If you usually fly coach, no worries.)

Africa: Tough to find good Business Class deals; a good time to go for Premium Economy with BA or Virgin.

Compare Prices Between Classes of Service: Ticket price is the determinant. On short notice, Premium Economy fares are not so cheap, particularly on busy routes. But neither is economy much of the time—and sometimes PE is not much more than full economy.

Fastest, Cheapest, but Least Comfortable: As mentioned above, United’s Economy Plus seats aren’t in the same league as the others discussed. Elite status with United nets you the seat for free, or you can pay $349 a year for a membership in what the airline calls Elite Access, which enables you to confirm a seat in the Premium Economy section (with a companion) gaining five extra inches of legroom.

[table_opt style="gray-header" id="1600 " width="" alignment="center" responsive="all" heading="thcenter" rows="tdcenter"]

High on the List—BMI: The Star Alliance member has just installed new lie-flat seats in the Business Class cabin of its two A330 aircraft, which fly from Manchester to Chicago, Las Vegas, Antigua, and Barbados. Instead of junking the old Business Class seats, BMI installed them in a new Premium Economy cabin. These seats perform as well as many airlines’ Business Class seats: The recline is estimated at 150 degrees, the width 21 inches, and the pitch 49 inches.

‘Managed’ Business Travelers: If your company has an “economy class only” travel policy, start the dialogue to get Premium Economy on the radar.

[aside headline="MY FAVORITE PREMIUM ECONOMY STRATEGY" alignment="alignright" width="half" headline_size="default"]When Business Class to Europe is too pricey, my recommendation is to book Premium Economy on BA because it offers the lowest mileage upgrade to Business Class. And if the upgrade doesn’t come through, you’re still a cut above coach. (Sign up for BA’s mileage program and you’ll get email alerts announcing fare sales, which often offer Premium Economy for as little as $300 more round-trip than coach.[/aside]

Mileage Awards: Most airlines offer them—and they’re certainly worth the extra expense over coach (and most partner with Starwood’s Starpoints program).

Review the Amenities: Everyone values them differently. Qantas offers in-arm touch screen video monitors, premium wines and Champagne, orange juice, and water before take-off. Its new service also includes priority check-in, dedicated cabin crew, an additional hand baggage allowance, and priority boarding and disembarkation.

South Pacific Flights: Still a pricey market, despite two new carriers. Published round-trip fares are often $13,000 in Business Class, and PE fares are disproportionately higher than most other routes, starting at about $4,100. Otherwise the best option is a 2-for-1 with Air New Zealand.

[table_opt style="gray-header" id="1601 " width="" alignment="center" responsive="all" heading="thcenter" rows="tdcenter"]

The in-between cabin continues to expand; why it may be the best option for some long-haul flights.

Every survey shows that if air travelers could wave a magic wand they’d make economy class more comfortable (but not more expensive). There have been two primary movements to make this happen: one has been a prominent flop so far; the other is a quiet success (so far).

The former is the all-Business Class trend, most of which has fallen victim to high oil prices and the legacy carriers’ relatively lucrative loyalty programs. The latter is Premium Economy Class, which only grows in popularity each year, as cattle class is incresingly dire.

In fact, Premium Economy (PE) was designed for long-haul flights—you get a little more legroom and an ounce more privacy for significantly less than the cost of Business Class. It was pioneered by Virgin Atlantic and EVA Air in the early nineties, and taken up by other international carriers—mostly Premium Service Carriers (PSC) like British Airways and Air New Zealand. Yet Premium Economy is still far from a standardized product. There is real Premium Economy—a separate cabin with seats that outperform economy—and PE Lite, in which several rows of economy class seats are spaced...

[["<strong>Route<\/strong>","<strong>Airline<\/strong>","<strong>Aircraft*<\/strong>","<strong>Class<\/strong>","<strong>Fare<\/strong>","<strong>Width<\/strong>","<strong>Legroom<\/strong>","<strong>Recline<\/strong>","<strong>Difference<\/strong>"],["Chicago-London","United\nVirgin Atlantic","B767\nA340-300 \n\n","Business\nPrem. Economy","$3,660\n$1,198\n\n","19\u0094\"\n21\u0094\"\n\n","55\u0094\"\n38\u0094\"\n\n","147\u00b0\nest. 125\u00b0\n\n","+$2,462 \/ 305% "],["New York-London","Continental\nVirgin Atlantic","B757\nB340-600\n\n","Business\nPrem. Economy","$2,180\n$966\n\n","20\u0094\"\n21\u0094\"\n\n","55\u0094\"\n38\u0094\"\n\n","156\u00b0\nest. 125\u00b0\n\n","+$1,214 \/ 225%"],["San Francisco-Tokyo","United Airlines\nJAL","B777\nB777-300ER\n\n","Business\nPrem. Economy","$4,690\n$1,550\n\n","20.5\u0094\"\n18.9\u0094\"\n\n","55\u0094\"\n38\u0094\"\n\n","147\u00b0\n120\u00b0\n\n","+$3,140 \/ 320%"],["Los Angeles-Auckland","Air Tahiti Nui\nAir New Zealand","A343\n\nB777-300ER\n","Business\nPrem. Economy","$7,300\n$3,808\n\n","19\u0094\"\n18.5\u0094\"\n\n","53\u0094\"\n38-40\u0094\"\n\n","154\u00b0\n126\u00b0\n\n","+$3,492 \/ 191%"]]
<em><small>* Only applies to aircraft noted. A carrier’s seats can vary greatly from one type of aircraft to another.</small></em>
[["<strong>Route<\/strong>","<strong>Airline<\/strong>","<strong>Coach Fare<\/strong>","<strong>Premium Economy Fare<\/strong>","<strong>Cost Per Hour to Upgrade<\/strong>"],["Chicago-London (16 hours r\/t)","British Airways\nVirgin Atlantic\nBMI (Chicago\/Manchester)* ","$568\n$568\n$541\n\n","$1,198**\n$1,198**\n$1,141\n\n","$39\n$39\n$38\n\n"],["New York-Tokyo (26 \u00bd hours r\/t)","Japan Airlines","$830","$2,000 ","$44"],["Los Angeles-Sydney (28 hours r\/t)","Qantas","$1,358 ","$4,098 ","$98"]]
<em><small>*Uses its former Business Class seats—a high-value opportunity (see last month’s FCF). **Sale fares to Europe can be half this price.</small></em>
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