Suite dreams

“There’s only a certain amount of floor space each set can occupy in the cabin, so this also puts limits on physical components of business class in terms of seat width and even the size of the IFE screen,” notes Flynn.

So for Flynn smarter use of space is the focus for airlines and their seat designers and Peter Harbison founder of the Centre for Aviation agrees saying “yes… they have to be smarter” while also warning that “it is a continuous circle.”

Indeed it is and the merry-go-round started way back in 1952 when Pan American World Airways introduced tourist class on North Atlantic routes on its DC-6Bs.

The widespread introduction of four-engine land planes at the end of the war meant a substantial decline in costs for airlines. Pan Am was able to bring fares down 30 per cent by 1950, while cargo rates had dropped 50 per cent.

In fact Pan Am introduced a no–frills tourist class in 1948 on flights from New York to San Juan. The airline used DC-4s in a five-across 63–seat arrangement and only soft drinks were served, while boxed dinners could be purchased before departure.

The fare was US$75 one-way compared to the normal US$133 and within five months of the introduction of the service, passenger numbers had trebled.

But on routes to Europe, it took Trippe four years to get all the approvals from the International Air Transport Association (IATA), plus a host of governments that controlled the major European airlines.

But on 1 May 1952, a DC-6B Clipper Liberty Bell operated the first tourist class (economy) flights between New York and London. The one-way fare had been set at US$270 compared with US$395 for first class. The lower fare was achieved by upping the seating from 52 to 82 and the tourist section was five across rather than four. But tourist class passengers still retained the generous 40-inch (101cm) seat pitch, compared to today’s standard of 32-inches (81.28cm).

Tourist class was an instant hit. Traffic doubled within a year and the service was extended to Paris, Rome, Brussels, Frankfurt, Amsterdam and Glasgow. By 1954, tourist class was available on all Pan Am routes and most routes around the world. The effect of the fares was stunning, with traffic increasing by 37 per cent in 1955 on the North Atlantic. In that year, (system-wide) 62 per cent of passengers were traveling on tourist tickets.

Into the 60s airlines waged war around the economy fare by reducing seat pitch down to 34 inches but when the 747 was introduced in 1970 it was still the same pitch in a generous 3-4-2 configuration.

However through the 70s the gap between First Class and Economy Class started to widen as airlines responded to the threat from a new breed of lower cost and charter airlines such as Southwest, Laker Airways, Overseas National Airlines and Trans International.

Seat pitch in economy started to reduce towards 32 inches while airlines added an extra seat across the width on 747s, DC-10s and L-1011s.

Enter Business Class!

Bragging rights are disputed with Pan Am and Air France reported as introducing the class in November 1978, but Qantas claims it was first in 1979.

Qantas’s Business Class on its 747s used First Class seats from Trans Australian Airlines DC-9s in a 2-4-2 configuration and within a few years most international airlines had followed suit.

Slowly but surely the configuration became more spacious and the recline greater with seats such as the cradle from British Airways in the early 1990s. That was followed by the angled flat bed and finally the flat bed.

First Class was always a step ahead but once the Business Class offering reached flatbed status the future of the pointiest part of the aircraft was in doubt. In reality it had been on the wane for decades as cost conscious high flyers saw the value of the Business Class offering increase.

Many airlines, such as Air New Zealand, ditched First Class long ago and that often was done with the introduction of Premium Economy to tap the emerging market for those feeling the squeeze in economy.

So in most cases the industry has managed to come full circle with Business Class essentially First Class for the majority of airlines and certainly in the customer eyes with the Premium Economy offering now better than the original Business Class of 1979.

According to Centre for Aviation’s Harbison the global spilt for passenger seating is: Economy 92.5%; Premium Economy 1.7%; Business Class 4.20%; and First Class 1.5%. However, notes Harbison, those numbers are distorted by, for instance, American carriers calling their front end domestic product First Class, whereas in most cases it is more a Business Class product.

That split is in stark contrast to premium product leaders Singapore Airlines and Cathay Pacific Airways. Singapore is: 85.5% Economy Class; 0.3% Premium Economy, 13% Business Class and 1.2% First Class.

Cathay Pacific Airways which unlike Singapore Airlines has had Premium Economy in place for some time has a more heavily weighted split to the premium end thus: Economy Class 78.6%, Premium Economy 5.7%; Business Class 15%; and 0.7% First Class.

The other high flyers are Emirates and British Airways with 15.2% of premium seats and 18.4% respectively. These numbers are about twice that of most European airlines according to the Centre for Aviation.

While there is no question First Class is a dying class in most parts of the world – with perhaps only its name being the allure that is keeping it flying but that “X factor” is alive and well in London and Dubai.

London Heathrow is home to nine of top 10 first class routes and 15 of top 25 according to a Centre for Aviation report. It states that “the world’s largest first class routes underscore two points: first, London as a strong business destination and secondly that growth constraints at London Heathrow have seen British Airways strategically grow through a larger share of high-yielding passengers (across premium passengers and premium economy).”

“In absence of the ability to grow flights, British Airways has increased the number of premium seats. In 1997 British Airways had 332 economy seats on its 747-400; today it is about 185,” the report said.

Nine of the world’s 10 largest first class routes are to/from London Heathrow while 15 of the top 25 are also to/from London Heathrow. Of the 15 routes to/from London Heathrow, British Airways is the largest first class operator on nine of them. The top route longer than 3,500km with the largest number of first class seats when business class is also offered is London Heathrow-New York JFK with 1,116 weekly first class seats.

This is a comfortable lead over the second-largest first class route, London Heathrow-Dubai, with 850 weekly first class seats says the Centre for Aviation. “London Heathrow-New York JFK’s 1,116 weekly first class seats is almost double the average 559 first class seats operated on the top 10 routes with most first class seats, and more than double the average 401 first class seats on the top 25 routes,” it notes.

Overall however says the Centre for Aviation, Dubai, Emirates’ headquarters, is home to more long-haul first class routes than London Heathrow, and Emirates flies more long-haul first class seats than British Airways or Lufthansa. Harbison notes that Emirates “does First Class well.”

While First Class is “unequivocally one of decline” Harbison says the new cabins from Etihad Airways launched late in 2014 have brought “unprecedented levels of luxury to first class.”

And those new “digs” along with new Etihad’s new Business Class suites have prompted the king of First Class Emirates to announce it is responding early year.

Emirates President Tim Clark, said the “new bedroom concept will take privacy to the next level.”

“We’re talking fully enclosed rooms, with all the touches and amenities that you’d expect in a hotel or a private bedroom on a luxury yacht, room service and so on.”

Australian Business Traveller’s Flynn says the next stage in Business Class is “more room for working, for storing your carry-on knick-knacks so they’re close at hand rather than stowed out of reach in the overhead bin.”

“I expect some business class seats will adopt suite-style sliding partitions for additional privacy, even beyond the seat ‘shells’ already used by the likes of Cathay Pacific and Etihad. We’ll see more considered design in terms of lighting and premium finishes, as airlines strive to differentiate their ‘travel experience’ from that of the competition. We’ll see more airlines adopting inflight Internet and possibly making it part of the business class ticket price rather than an add-on cost. Soft product will assume increased importance, so inflight meals and wine and service are all going to move to the fore,” predicts Flynn.

Harbison says new developments in Business Class will be all about “space and privacy.” Premium Economy is now squeezing business upmarket, he notes.

Flynn agrees. “Premium economy is already hitting the ceiling. Airlines are afraid of cannibalising the premium cabins. That’s why the likes of Singapore Airlines and Lufthansa were so late to the premium economy party, and it’s where Qantas and Cathay Pacific have carefully calibrated their own mid-cabin offerings.”

“So there’s only a certain amount of room to manoeuvre between being sufficiently better than economy – enough to warrant the extra price tag – while staying well south of the pointy end. Premium economy will continue to be about the legroom, the recline, the wider seats and larger IFE screens and AC/USB sockets, plus extras like meals drawn from the business class menu selection, amenity kits and of course little touches like the champagne on take-off. Airlines may need to give some ground on formerly premium-only perks such as airport lounge access,” suggests Flynn.

“Premium economy is now squeezing business upmarket.”

So who is best in class?

Flynn gives top marks to Singapore Airlines and Qatar Airways and says their Business Class seats or beds are arguably as good as some first class seats, “and demonstrably better than most first class seats of 10+ years ago.”

“I’d rate Singapore Airlines as having the world’s best business class, in its latest Boeing 777-300ER products, and the world’s best premium economy. Cathay Pacific, Qatar Airways and Etihad Airways also have top-notch business class, with Qantas in second place for premium economy,” says Flynn.

Qantas was a late adopter of premium economy despite presentations from Australian Aviation in 1997 on the huge untapped market from Australian. This magazine in a pitch to former chief executive James Strong pointed out that Australians are the world’s second tallest passengers and fly the second longest distances.

Strong’s claimed Qantas “couldn’t make the business case.” Ten years later then chief executive Geoff Dixon admitted it was one of the airline’s bigger mistakes.

Air New Zealand is tops in Premium Economy, according to AirlineRatings.com editors in their 2016 awards and the airline has previously won Best Business Class for the ratings site.

And Flynn notes that there is a raft of launches due this year in the business class space from Cathay Pacific’s refreshed A350 business class to Qatar’s much-hyped ‘super business class’, and both of those will be ones to watch.

With the introduction of more private business class flat beds the last important advantage of First Class is disappearing and only the name sets it apart. The exception is Etihad Airways with its First Class suites and of course its unique Apartment.

What will set the trend for the future is how Emirates responds as it is the world’s largest international airline and has the largest First Class equipped fleet.

The expectation is the First Class product will not go as far as Etihad’s but will be a step up for the current offering which is superb and “commercially viable” according to Emirates taking a not subtle dig at its UAE cousins.

And that is the key. Etihad’s First Class is on a handful of A380s only whereas Emirates has 70 with 70 more coming and whatever the airline does has to make economic sense.

Sheikh Majid Al Mualla, Emirates’ divisional senior vice president of commercial operations for the Middle East told Traveller.com.au last year that the new product would debut in the A380 and then the 777.

The airline had hoped to unveil the product late last year but that has slipped into the first quarter of the year.

According to Al Mualla the pricing will be “almost the same pricing and it should be more commercially viable for passengers.”

And that is the difficult bit – giving premium passengers more for less in a challenging financial climate.

One airline that has achieved the right mix in spectacular fashion is Air New Zealand which is winning award after award for its product. The country is not a financial centre nor a hub like Hong Kong or Singapore yet the airline offers and fills 44 Business, 44 Premium Economy seats on its 777-300ERs compared to Cathay Pacific’s 40 Business and 32 Premium Economy seats.

And on top of that Air New Zealand has its award winning and innovative SkyCouch in Economy offering passengers a flat-bed arrangement that is perfect for couples or a parent with two children.

All in all the airline has 144 premium and 184 standard Economy seats on its 777-300ERs – an amazing mix given the economic dynamics and location of New Zealand.

With most Business Class beds now flat and Premium economy in an ideal space, the innovation challenge for airlines may come down to the little extras that can’t be counted rather than the things that can.