SimpliFlying

Airlines often showcase their First Class products to set themselves apart, and attract masses’ attention. After all, it provides great brand leverage, as many people aspire to get there one day and fly First. But First Class is either a dying flying style, or has gotten more exclusive than ever before, depending on how one looks at it. With the relentless piling of more luxury and space to the in-demand and lucrative business class, a number of airlines have done away with First Class on many routes. This article hunts the remaining First Class products where the very best is offered to the most privileged. First Class provides the passengers with what is the scarcest, and thus most exclusive, on-board an aircraft – Privacy, Space and Novelty.

Emirates Airlines First Class

First available on its A340-500, Emirates’ suites presented a novel idea of flying – enclosing the passenger with a door to create ultimate privacy. Although the seat is smaller and narrower compared to the newer SIA’s suites, Emirates’ suites are more elaborately furnished and still one of the world’s finest way to fly. Emirates wins my applause in providing showers for First Class passengers on-board their A380. Safety issues aside, I cannot recall how many times I had wanted a shower on a long flight before I settle down to sleep. A novelty with a strong dose of practicality – one of the few things rarely seen from Emirates in these days. Privacy: 9/10, Space: 7/10, Novelty: 9/10

Smaller but very tastefully decorated private suites on Emirates

Singapore Airlines First Class Suites

Available only on the A380, the Singapore Airlines Suites are slightly wider and larger than Emirates’, the pioneer to a room-suite seating concept on a major commercial airline. The 35in-wide seat transforms into a 27in by 78in bed. The ultra rich can opt to book one of the two pairs of adjacent suites and transform a pair of suites into a huge room with a double bed. The doors, however, are translucent and do not extend to the ceiling.  Privacy: 8/10, Space: 9/10, Novelty: 9/10

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Cathay Pacific Aiways has come up with a brilliant initiative to allow prospective customers to experience their new cabins online. Dubbed “try before you fly”, web surfers can choose between having a male or a female guide, and then choose between the First, Business or Economy class. The best part is that they can either choose to be “shown around” by the guide, or explore the photo-realistic interiors themselves.

Try before you fly

Once a surfer is in a particular cabin, he or she can test out the different conveniences in the cabin with the click of a mouse - and these include common activities like working on a laptop and going to sleep. When doing the latter, the seats recline fully and cabin lights are dimmed. One can also walk around the plane and explore different cabins. When that’s done, one can step into the flight simulator and choose to experience landing at one of the many international airports Cathay Pacific flies to - including New York JFK and Hong Kong. As if that’s not enough, surfers can even enter a competition to win business class tickets to Hong Kong to try out their real flight simulator. How sweet is that?
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The recent spate of airline mergers - or merger talks - begs the question: Is it better for the industry if two airlines merge or one of them goes bankrupt. Verdict: It’s better if an airline goes bankrupt.

Here’re three reasons why bankruptcies are good for the industry overall.

1. Increases industry revenues. Many airlines are not making money because fares are too low, compared to costs. More bankruptcies mean less price competition for the remaining airlines. They can then raise fares with less fear of undercutting. This would help them cover costs, and increase profits for the industry overall. Cathay Pacific was able to optimize flight times between Hong Kong and Vancouver after Oasis HongKong went bust.By contrast, in mergers, the new combination of airlines takes long to rationalize routes, and when they do, they still charge low rates since fares never really increased the way they could have, due to sudden disappearance of competition from a route.
2. Dramatically lower costs. When airlines close for business, they lay off a large number of people. These people increase the labor supply in the market, and are hired by other airlines at lower wages. This reduces the overall wage component of the costs. When airlines go bust, they also get rid of their planes at very low prices. They are sold to other airlines, which can then put them on their under-serviced routes. Again, reducing the cost of the equipment. AirAsia is a great example of an airline, which inherited two planes with just a $0.50 down payment, and  was able to tap on the abundance of cheap labor, right after 9/11.
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   Tags: AirAsia, bankruptcies, Cathay Pacific, mergers, US Airways
   

The airline industry is one in which there are a lot of externalities – situations beyond the control of individual airlines, which they have to deal with. These may include events such as 9/11, weather conditions, pilot union trouble or even the bankruptcy of a competitor. Though on the face of it, these may all seem to bring trouble, but if leveraged well, these externalities can lift the airline brand in a number of ways. This is because almost always, a number of airlines face a similar macro-situation simultaneously, but it is those who deal with it well who come out triumphant.

Here are three examples of how airlines around the world have been resilient in the face of externalities.

1. Olympics in Beijing? Let’s send the A380 there. To capitalize on the increased travel demand to Beijing during the Olympics, Singapore Airlines recently announced that they will be flying the A380 to Beijing during this period. What a perfect example of dexterity. Not only will SIA be able to showcase their premium product to a large number of travelers (who’re ever so happy to be on the A380), they’re charging more for those tickets too. Perfect win-win situation.
2. Competition died? Let’s service their routes. Alaska Air started new routes to Hawaii from Seattle after Aloha Airlines collapsed earlier this year. Not only were they able to service existing demand. Another win-win situation.
3. Passengers stranded by competition? Let’s help them out. SilverJet offered seats to stranded Eos passengers between London and New York once the latter ceased operations. Cathay Pacific offered seats to tons of students heading to London once Oasis Hong Kong went out of business. Both these airlines appeared as “rescuers” in the eyes of the passengers. What better way to acquire customer loyalty, that too from those who were going to the competition earlier.

Response to externalities is a crucial, but often overlooked, strategy that can be utilized by airlines to win the hearts and minds of their passengers. These three customer examples demonstrate that.

Please feel free to share your own experiences in the comments section, where you’ve encountered dexterity on airlines’ part.

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Links:

1. SIA to fly A380 to Beijing Olympics
2. Alaska Air to fly to Hawaii
3. SilverJet’s sweet deal for EOS passengers
4. Cathay Pacific operating flights for stranded Oasis passengers