Air France & Quantas

by Chelsea Lange, Research Intern for GLOBAL ID LLC

Many airlines have recently seen a decline in first-class and business-class tickets causing them to recoup sales by adding upgraded economy seating. Many airlines are removing business-class seating or shrinking it to add more premium economy and coach seats. Air New Zealand is adding lie-flat seats in coach. They are also adding premium economy seats where couples can relax together and dine at a common table. The “Skycouch,” can be made into a bed for two. Due to the economy, many airlines may be misjudging the market. It takes a couple years for a company to come up with a vision for the planes and a lot of money to implement the changes. If the changes were incorrect it takes a lot of time and money to rectify the mistake. Airlines could be missing out if the premium travel industry turns around. It is very important for companies to consider all of the possibilities before making large, time consuming and expensive changes.

Source:
http://www.businessweek.com/news/2010-03-14/air-france-qantas-enter-all-out-war-for-downgraded-fliers.html