Have you been off this planet for the past two years? Or had you not noticed AC had been in bankruptcy protection for much of 2003/4? Airlines in such circumstances are not able to undertake $100 million interior refits, nor would there be many suppliers willing to gear up to produce as many units as AC would require for a company that was in such financially difficult shape.

Before it entered CCRA, it had bought several A340-500s with the new lie-flat sleeperbed seats that now are found on this aircraft [as well as a new back cabin seat]. This was to have been the initial stage of reconfiguring all wide-body cabins with this seat [and upgrading the back cabins with inseat PVDs] so the old CP and AC fleets would finally have an integrated interior.

As noted, this upgrading had to be put on hold for two-years, and now AC has realized the seat it chose for ExecFirst is not as good as it might be. The company is in the final stages of confirming a new seat. Some of us are expecting AC to opt for the NZ seat, which is similar to the Virgin Atlantic one and offers full privacy. It has committed itself to introducing this seat during the summer of 2006, according to press releases late last year. [This could also coincide with the introduction of new wide-bodies to the fleet.]

I think we all agree AC is lagging its principle competitors on key routes like HKG and LHR, but at the same time, AC is filling those seats it does have and neither competitor [CX or BA] are increasing capacity save for their normal seasonal increases.

But until it emerged from CCRA, there was nothing that could be done. The business plan that was approved certainly includes such upgrading of interiors and seating in all clases, and premium will be the place to start as it yields the greatest return to AC.

Also remember, that even while it was in CCRA, AC was able to upgrade the actual inflight service offered in both classes of service on overseas flights. This had little additional cost to the carrier, as it would have been an ongoing operating cost, not a capital one.