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First-class flying makes way for business travel
Financial Times ^ | 11/15/17 | Peggy Hollinger and Tanya Powley

Posted on 11/19/2017 9:39:39 AM PST by Simon Green

For anyone who has ever dreamt of flying first-class, time may be running out.

Emirates Airline this week kicked off the Dubai Air Show by unveiling the luxurious private cabins it will put on its Boeing 777 aircraft. The result is an elegant, hotel-style space designed to meet needs most passengers do not even know they have.

But like Singapore Airlines, which unveiled its own $850m first-class revamp earlier this month, Emirates has decided that it needs to provide such six-star luxury to fewer passengers than in the past.

The number of first-class suites on Emirates’ 777s will fall from eight to six as a result of the revamp.

When the concept is extended to its superjumbo A380s, the number of private cabins will go down from 14 to 11. Singapore has halved the number of first-class places on its A380s.

Tim Clark, Emirates president, insists that the reduction in first class seats does not signal the demise of elite travel on his airline.

The company has just invested four years and millions of pounds — he will not disclose the final sum — in revamping the elite category.

“Demand for first-class on Emirates . . . remains very strong,” he says. “We have a very loyal customer base and we need to keep [them] interested in what we are doing.”

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Yet the number of seats available to first-class passengers is shrinking in most parts of the world, according to OAG, the aviation data consultancy.

During the past three years, first-class capacity has fallen 7.3 per cent in western Europe, and in North America 23.6 per cent.

Instead, evidence suggests airlines are beginning to devote more space to lucrative business-class passengers, who fly more frequently, cost less to serve and take up less space than the occasional elite traveller.

According to the International Air Transport Association, the number of seats dedicated to premium travel, which combines first- and business-class passengers, has largely held steady at 5.2 per cent. If first-class capacity is declining, business class appears to be shoring up premium travel, where fares average three to six times economy-class.

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That is a trend observed by the big aircraft manufacturers which configure the seating in passenger jets for their airline customers. “We are finding that first-class is going away in more and more markets,” says Randy Tinseth, vice-president of marketing for Boeing Commercial.

Few of Boeing’s 787 twin-aisles, for example, have a first-class option, he says, while the luxury service is provided on just 20-30 per cent of the Boeing 777 wide-bodies in operation. “They tend to be on the most lucrative markets . . . like New York, London or Dubai,” he says.

Business travellers may demand many of the same perks — such as flat beds and fine wines on long-haul trips — but they can be packed in more closely, which improves returns.

“Airlines are becoming smarter about ways to provide business-class services using a smaller footprint,” says Mr Tinseth. “It is all about square footage and finding ways to maximise the revenues.”

For many airlines, the opportunity for “perhaps an extra 20 business-class seats on a B777 is just too good an opportunity to miss in today’s market”, says John Grant of OAG.


TOPICS: Travel
KEYWORDS:
I've recently started acquiring airline credit cards strictly for their signup bonuses. It enables me to fly business class internationally for (almost) free a couple of times per year.

It's not first class, but it will do just fine compared to cattle car economy class.

1 posted on 11/19/2017 9:39:40 AM PST by Simon Green
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Most domestic first class is approximately equivalent to what peasant class was in the 70s. International, however, is pretty nice


2 posted on 11/19/2017 9:51:15 AM PST by dsrtsage (One half of all people have below average IQ. In the US the number is 54%)
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Comment #3 Removed by Moderator

To: dsrtsage
Most domestic first class is approximately equivalent to what peasant class was in the 70s

Adjusted for inflation, it costs about the same. Economy class is far cheaper (again, adjusted for inflation) than it was 50 years ago.

You get what you pay for.

4 posted on 11/19/2017 9:56:43 AM PST by Simon Green (<i>)
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To: dsrtsage

Oh yes it is!


5 posted on 11/19/2017 10:00:30 AM PST by Puppage (You may disagree with what I have to say, but I shall defend to your death my right to say it.)
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To: OttawaFreeper
I think I'd take modern business class (internationally) over first class of the '60s, if nothing else for the lie flat seats.


6 posted on 11/19/2017 10:05:19 AM PST by Simon Green (<i>)
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To: Simon Green

7 posted on 11/19/2017 10:14:53 AM PST by Paladin2 (No spelchk nor wrong word auto substition on mobile dev. Please be intelligent and deal with it....)
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To: Paladin2
I believe that photo is from a Boeing 377 Stratocruiser in the 1950's.

(quoting an article on it)

This double deck piston aircraft offered sleeper seats & berths as well as a lower level lounge. The Stratocruiser was the height of 1950s flying luxury and would reign as queen of the skies until 1958 when Boeing 707 jet service was inaugurated.


8 posted on 11/19/2017 10:27:01 AM PST by Simon Green (<i>)
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To: dsrtsage

I fly Southwest around 100 times a year - it is basically a Greyhound Bus in the Sky. But if you book at the right time, it is actually cheaper than a bus. Flew Midway to LAX for $99.


9 posted on 11/19/2017 10:30:38 AM PST by EC Washington
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To: Paladin2
I did a quick bit of Googling....a tourist class round trip ticket, New York to London, was $580 in 1955. That's $5400 in today's money!

You can get an economy class ticket for less than a tenth of that today.

10 posted on 11/19/2017 10:34:25 AM PST by Simon Green (<i>)
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To: Simon Green
I've flown Business Class a few times in my life.I had some kind of "elite" status on Continental in the 80's which gave me free upgrades to Business.I've also been upgraded twice on long flights,one having been a 14 hour flight.

Long ago my doctor advised to spend as little time as possible in my seat while flying.As a result I spend most of my time roaming the aisles and trying to pick up stews.

So Business Class doesn't mean much to me.

11 posted on 11/19/2017 10:37:35 AM PST by Gay State Conservative (ObamaCare Works For Those Who Don't.)
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To: Simon Green
You can get an economy class ticket for less than a tenth of that today.

On local radio and TV Norwegian Airlines is promoting Boston to Ireland for $99.

Of course at that price you pay $10 for a bathroom visit.

12 posted on 11/19/2017 10:40:39 AM PST by Gay State Conservative (ObamaCare Works For Those Who Don't.)
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To: Gay State Conservative
The longest flight I've been on was Atlanta to Johannesburg nonstop, 16 hours. In economy. In the middle seat of the middle row.

Misery. Business class for me from now on.

13 posted on 11/19/2017 10:51:53 AM PST by Simon Green (<i>)
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To: EC Washington

Flying Charlotte to Denver is cheaper than the bus and half the cost of Amtrak.


14 posted on 11/19/2017 11:58:25 AM PST by BwanaNdege ("The church ... is not the master or the servant of the state, but the conscience" - Luther)
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To: Simon Green

Amsterdam to Mumbai, 2002.

Flight was overbooked, so a harried, middle-aged KLM lady was trying to get irate customers onto other flights. When my co-worker & I arrived at her counter she began her apology statement. I gently interrupted her and said, “That’s OK, these things happen”. (I was in my mid-50’s at the time)

She looked up at me, paused for a second, then smiling said, “Let me see what we can do for you two.”

First class, upper deck, 747! Wow!

(My co-worker, a young computer tech about 30, had fallen in love with all the tall, elegant KLM stewardesses running around the Schiphol terminal and didn’t care if he EVER got on a flight out of there!)


15 posted on 11/19/2017 12:08:45 PM PST by BwanaNdege ("The church ... is not the master or the servant of the state, but the conscience" - Luther)
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