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Old Aug 27, 2014 | 2:43 pm
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Sixth Freedom
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Originally Posted by BearX220
Airlines saying there's no market for F is like auto companies saying there's no market for station wagons. Stop building them, or build only a few ones and do it badly, and then proclaim the market is dead and you all have to buy SUVs now.

There will always be a market for a superpremium cabin, especially as J cabins get larger and less exclusive -- the J decks on A380s are cavernous and house many dozens of passengers. Not what a film star or CEO wants, and contrary to some views they do not all, or always, fly private.

That said there are few airlines left that can muster the service ethic, investment, and commitment to deliver a true international F product -- certainly none of the American ones, and perhaps only LH in Europe. The top ME and Asian carriers will dominate this (admittedly dwindling) market segment in future not only because their native customers want and can afford it but because they are culturally equipped to deliver it.
I agree.

Here is something I once wrote in an e-mail to a previous Client ("RR") operating F on only a relatively small number of aircraft:

Originally Posted by Sixth Freedom
There are a number of good Commercial reasons to offer F on [aircraft] but unfortunately some of them are "difficult" to analyse and may have been underestimated before. They include:

i) Revenue increment from passengers with higher willingness to pay than J class.
ii) Less pressure on Y yields as there would be fewer seats in this cabin to sell.

iii) Higher demand for F seats on [aircraft] as passengers connecting to [aircraft] will be able to travel First Class all the way.
iv) Consistency with [alliance] partners who offer an extensive long haul F service including WW, XX, YY and ZZ and offering RR to more passengers buying [fare product].

v) Status benefit from passengers seeing First Class in their market as a strong signal of quality, boosting demand for RR services, reducing spoilage and increasing ATV in all cabins.
vi) Corporate benefit as some senior executives in markets currently without a RR First Class product may be inspired to take RR services, eventually allowing you to secure lucrative high volume contracts for their management teams' Business Class travel.

vii) Frequent flyer benefit as some passengers divert more travel to RR so that they can save up [miles] for a First Class flight or perceive the opportunity (whether there or not) of being upgraded due to overbooking in lower cabins.
viii) Mileage liability reduction as some passengers burn more [miles] for their redemption travel than they would otherwise.

ix) Multiplier effect of the above.
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