Airlines looking to lucrative upscale travelers

The bankruptcy filing of American Airlines focused attention on an industry that has had its ups and downs  —   mainly downs  —   since the 9-11 terrorist attacks but some carriers are now looking at slowing down the long-running “cattle call” approach to focus more on premium seats.

Why?

Various experts say there’s a simple reason: that’s where the money is.

The AP reports that first class and business-class passengers while making up only 8 percent of international travelers account for almost 27 percent of revenues.

AP reports the US industry collectively is spending almost US$2 billion to upgrade amenities for their highest-paying customers.

Private suites. Three-star meals. The type of personal service found only on corporate jets. They’re all starting to be offered by international air carriers who think status sells.

New services include massages before takeoff, a ride through special customs lanes and another drive in a private limousines to the plane. Bars? Sure.

“So as domestic travelers take to the skies for the holiday season, most will be sitting in cramped cabins, their food is likely to be bland and they will have paid for it, along with any fees for slightly more legroom or checked bags,” writes the Detroit News.

International routes are particularly targeted.

Rates can be as high as $15,000 for, say, a first-class seat from New York to Sydney.

The airlines are betting that the image of luxury they project for the front helps attract passengers to the rest of the plane, says the Detroit newspaper.

“On the most profitable international routes, high flyers are being treated with preflight champagne, flat-screen TVs and seats that turn into beds,” AP reports. “Flight attendants greet them by name, hang up jackets and serve meals on china.”

In the country that invented airline industry deregulation, the news is greeted with a level of astonishment. For most of the past 30 years, there has been no room for anything but airline accountants prowling the check-in desks and the back offices looking for savings.

Airlinereporter.com cited some other reasons for the luxury trend:

—It is simply cheaper to keep current customers than to attract new ones.

—Legacy carriers need to keep their frequent flyers. “Newer airlines, like Virgin America, have been shaking things up with-in the US. They provide superior first class and economy product and might make some of the frequent fliers on legacy carriers think twice into their premium products,” says the site.

—“Just because economy passengers are not seeing the royal treatment, doesn’t mean they are not getting anything,” the site says. Many airlines have been installing Wi-Fi onto their planes and some are even offering some decent food options  —  though they all cost money.

The bottom line, according to AirlinerRportercom:  Flying used to be just for the rich. Then just for the rich and middle class.

“Now, almost anyone can snag a cheap ticket and flying is open to the masses. You have the rich up front, the non-rich in the back and now some airlines are offering premium economy options for the middle class.”

By David Wilkening