DCF
Sep 29, 06, 5:35 am
Virgin Atlantic has reportedly just unveiled its new long-haul Premium Economy product, and I have a nasty feeling that it will be the final nail in Air NZ's coffin on the LHR-HKG route.
As we know, the route stands or falls on premium class profits. Air NZ is at a disadvantage from the outset in that the 747-400 is much less efficient than Virgin's A340, not to mention that the VS flight continues to Sydney, a richer and bigger market than Auckland. And as if that wasn't bad enough, Virgin has the same Business class seats but with proper amenity kits, a bar etc etc.
Now we know that Virgin will outclass Air NZ in Premium Economy too, even though the fares are almost identical. Whereas Air NZ has narrow 5 abreast seating upstairs, and Economy Class food with premium wines, Virgin has unveiled a wide seat almost identical in dimensions to the 4 abreast Business Class seat Air NZ used to operate upstairs, but with food to be served course by course on real crockery.
In other words, Premium Economy on Air NZ is a slightly enhanced economy class, while on Virgin it will correspond to the old NZ Business Class offering, except with better IFE.
I must confess that I'm quite angry about the Premium Economy product Air NZ has opted for. Talk of a 25% premium over economy proved to be a bare-faced lie: it is invariably double the discount economy fare, just 25% above the highest full economy rates. And opting for narrow seats would be OK if the premium was only 25%, but at the 50% premium the seats really should be as wide as old Business Class, just with less legroom. It should be 4 abreast upstairs on the 747, and 7 abreast on the 777, not 9 abreast.
Personally, I book Premium Economy once per year to the USA, but only in order to use my 2 Gold Elite confirmed upgrades.
I wouldn't dream of buying it if I thought I might actually have to fly in Premium Economy: I'd pay the extra $2000 for a Business Class Star Circle Pacific fare, which ludicrously costs $2500 LESS for SYD-AKL-SFO (all on NZ) SFO-HKG (UA) HKG-AKL-SYD (on NZ again) than if I just bought an Air NZ return SYD-AKL-SFO-AKL-SYD, even though I fly just as much on Air NZ, PLUS a Trans-Pacific business class sector on another airline too.
Honestly, fares as follows:
NZ SYD-SFO Discount Economy return $1600
NZ SYD-SFO Premium Economy return $4100
NZ SYD-SFO Business Premier return $8700
Star Circle Pacific Business Class $6220
Air NZ needs to review its Premium Economy product and its long-haul fares.
As we know, the route stands or falls on premium class profits. Air NZ is at a disadvantage from the outset in that the 747-400 is much less efficient than Virgin's A340, not to mention that the VS flight continues to Sydney, a richer and bigger market than Auckland. And as if that wasn't bad enough, Virgin has the same Business class seats but with proper amenity kits, a bar etc etc.
Now we know that Virgin will outclass Air NZ in Premium Economy too, even though the fares are almost identical. Whereas Air NZ has narrow 5 abreast seating upstairs, and Economy Class food with premium wines, Virgin has unveiled a wide seat almost identical in dimensions to the 4 abreast Business Class seat Air NZ used to operate upstairs, but with food to be served course by course on real crockery.
In other words, Premium Economy on Air NZ is a slightly enhanced economy class, while on Virgin it will correspond to the old NZ Business Class offering, except with better IFE.
I must confess that I'm quite angry about the Premium Economy product Air NZ has opted for. Talk of a 25% premium over economy proved to be a bare-faced lie: it is invariably double the discount economy fare, just 25% above the highest full economy rates. And opting for narrow seats would be OK if the premium was only 25%, but at the 50% premium the seats really should be as wide as old Business Class, just with less legroom. It should be 4 abreast upstairs on the 747, and 7 abreast on the 777, not 9 abreast.
Personally, I book Premium Economy once per year to the USA, but only in order to use my 2 Gold Elite confirmed upgrades.
I wouldn't dream of buying it if I thought I might actually have to fly in Premium Economy: I'd pay the extra $2000 for a Business Class Star Circle Pacific fare, which ludicrously costs $2500 LESS for SYD-AKL-SFO (all on NZ) SFO-HKG (UA) HKG-AKL-SYD (on NZ again) than if I just bought an Air NZ return SYD-AKL-SFO-AKL-SYD, even though I fly just as much on Air NZ, PLUS a Trans-Pacific business class sector on another airline too.
Honestly, fares as follows:
NZ SYD-SFO Discount Economy return $1600
NZ SYD-SFO Premium Economy return $4100
NZ SYD-SFO Business Premier return $8700
Star Circle Pacific Business Class $6220
Air NZ needs to review its Premium Economy product and its long-haul fares.