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-   -   'Is Flying First Class Doomed?' (https://www.flyertalk.com/forum/emirates-skywards/1606377-flying-first-class-doomed.html)

joshwex90 Aug 28, 2014 3:06 pm


Originally Posted by Mike Jacoubowsky (Post 23433817)
Premium F isn't going to work for US airlines until they drop the label from their domestic "F" offerings. What "F" means on a US carrier is so ridiculously all over the map that it can never have the value, in many customer's minds, that it needs to command a high-enough price to justify a super-premium service.

On FT, sure, we understand the differences between International anything and Domestic anything. But the domestic carriers do nothing to draw attention to those differences, and I doubt it could be unwound at this time. The damage is done.

In Europe, most "domestic" (within EU) flights don't even claim an "F" section, but rather "business" which is nothing more than a middle seat that's been replaced by a tray. As much of a perversion of the notion of "business" as the US carriers do with "first class." Wonder how much of that has to do with FF redemption? People flying an International leg on a legit C that don't want to see that "mixed cabin" note?

I agree that the domestic F should be renamed as Business Class, though that will likely never happen.

It's interesting the comparison between domestic F to intra-European C. The seat in the USA is significantly more "premium" than the seat in Europe; but the treatment in Europe is significantly more premium, at least on LH, LX, and BA.


Originally Posted by eightblack (Post 23434127)
That's the funniest thing I have heard all day. I'm going to wait until my wife gets home from work and tell her you told me to say that ;)

How'd that work out for you? :)


Originally Posted by bhrubin (Post 23434451)
I doubt rebranding domestic F is confusing anyone. The market segment that flies these classes likely understands quite well the distinction. The general lay person out there that doesn't isn't likely to be in the market for these F seats, anyway.

You'd be surprised though. I have a friend who flew domestic F, and then considered an international trip. He was going to not fly UA F purely because he felt that their F isn't up to par, since "other airlines have these seat-bed combo things, and UA was just like a recliner chair." I had to explain to him that domestic F and international F are completely different beasts.

And good thing i did - I saved him a few thousand dollars over BA. (I still love the treatment by FAs in GF on UA)


Originally Posted by Always Flyin (Post 23435109)
I disagree. American carriers are run by American CEOs who were taught in business school the road to profits is made in cutting costs. The entire concept of spending money and improving the product to entice customers is lost on U.S. airlines.

As a result, I fly in paid F regularly, but not on a U.S. carrier (except for the new AA 77W flight from LAX to LHR because it is superior to BA).

OK, but are they wrong? Compare the profits at UA, AA, and DL to the profits at SQ, EK, EY, etc.


Those who can afford F generally don't fly U.S. carriers and the UA GS members aren't going anywhere since the entire CO fleet is already two-class and they fly on those and maintain GS.
Not exactly true.

bhrubin Aug 28, 2014 3:15 pm


Originally Posted by joshwex90 (Post 23440123)
You'd be surprised though. I have a friend who flew domestic F, and then considered an international trip. He was going to not fly UA F purely because he felt that their F isn't up to par, since "other airlines have these seat-bed combo things, and UA was just like a recliner chair." I had to explain to him that domestic F and international F are completely different beasts. And good thing i did - I saved him a few thousand dollars over BA. (I still love the treatment by FAs in GF on UA)

There's always a few! Nice save! And we must be two of the very few persons here on FT who actually enjoy the FAs in GF on UA. I agree with you--we've always had very nice service in GF.


OK, but are they wrong? Compare the profits at UA, AA, and DL to the profits at SQ, EK, EY, etc.
You nailed it on the head that UA, AA, and DL have much bigger profits than SQ, EK, CX, and the like. Everyone loves to talk about the amazing service and seats on those 5 star airlines that basically are state-owned enterprises with state subsidies that allow them to offer such amenities. They have tiny profits. Of course, I love to fly those premium classes on those state-owned carriers, too--but I don't hate on my UA and other US carriers because they make profits and try to run a business for profit!

joshwex90 Aug 28, 2014 3:39 pm


Originally Posted by bhrubin (Post 23440174)
There's always a few! Nice save! And we must be two of the very few persons here on FT who actually enjoy the FAs in GF on UA. I agree with you--we've always had very nice service in GF.

I'm someone who loves complaining! But I HATE complaining for the sake of complaining. UA GF FAs have been incredible on every flight. Only consistency I've ever had. And the seat (I believe they're now all the new one) is fantastic. It's no suite, and obviously I'd take SQ or EK if I had the chance. But what more can I want than an intimate cabin, a seat wider and longer than I need it, comfy, all the storage I need, nice IFE screen, no one climbing over me and no one for me to climb over, etc.


You nailed it on the head that UA, AA, and DL have much bigger profits than SQ, EK, CX, and the like. Everyone loves to talk about the amazing service and seats on those 5 star airlines that basically are state-owned enterprises with state subsidies that allow them to offer such amenities. They have tiny profits. Of course, I love to fly those premium classes on those state-owned carriers, too--but I don't hate on my UA and other US carriers because they make profits and try to run a business for profit!
Exactly - it's hard to get upset at airlines that are trying to make money. At the end of the day, a business is there to make profit. They're not charities that exist to make everyone happy. I'd love to always fly airlines like SQ. But they're making barely a few million in profit. Compare that to nearly $1B

bhrubin Aug 28, 2014 3:48 pm


Originally Posted by joshwex90 (Post 23440300)
I'm someone who loves complaining! But I HATE complaining for the sake of complaining. UA GF FAs have been incredible on every flight. Only consistency I've ever had. And the seat (I believe they're now all the new one) is fantastic. It's no suite, and obviously I'd take SQ or EK if I had the chance. But what more can I want than an intimate cabin, a seat wider and longer than I need it, comfy, all the storage I need, nice IFE screen, no one climbing over me and no one for me to climb over, etc.

Wow, where have you been when all of this time as the FTers have been bashing me for my like of UA GF?

I so agree. I don't deny that F in SQ and CX (and EK I'm sure, as I'll be flying that in Jan) are better overall, especially on food/service, but the GF on UA has been more than satisfactory for me when I've flown it (about half the time I fly F). I've found UA GF to have pretty good service, pretty fun FAs, pretty decent food, and excellent IFE. The seat is nice--not as good as SQ or CX, but about as good as TX (non suite) and BA (non A380).

eponymous_coward Aug 28, 2014 4:44 pm


Originally Posted by bhrubin (Post 23440343)
Wow, where have you been when all of this time as the FTers have been bashing me for my like of UA GF?

No-one is bashing you for a preference (or if they are, that's silly, that's like bashing someone for liking strawberry ice cream and Coca-Cola over caviar and Dom Perignon).

What may be in dispute is thinking that UA's GF product is particularly key in driving their current business model, or that the fact that UA decided on their IPTE model back in the last decade, and AA is deciding on a model that only has F on a small number of routes, means we can conclude that UA is more successful with their F product than AA is.

I think that if UA thought their GF product was a key driver for their business model, it would be treated much more like EK's (or even LH's), with the soft product touched up quite a bit. It is clearly not; a soup course on top of a C meal seems like minimal effort to differentiate F and C at best. With the arrival of new aisle-access, lifeflat longhaul C products at competitors (AA and DL), the differentiation seems to be getting smaller.

There's also no sign that UA is refreshing their IPTE product in F (something CX, SQ, AA, BA and LH have all announced recently in THEIR F cabins), their recent 763 refurb post-merger did not include F seats (contra their pmUA 763s), and no UA 788s have shown up with F seats. I'll happily reconsider this once I start seeing some new planes with globes on the tails sporting 3-cabin F cabins.

To try to make this on-topic... EK seems to make consistent profits:

http://www.theemiratesgroup.com/engl...al-report.aspx

bhrubin Aug 28, 2014 5:01 pm


Originally Posted by eponymous_coward (Post 23440566)
No-one is bashing you for a preference (or if they are, that's silly, that's like bashing someone for liking strawberry ice cream and Coca-Cola over caviar and Dom Perignon).

What may be in dispute is thinking that UA's GF product is particularly key in driving their current business model, or that the fact that UA decided on their IPTE model back in the last decade, and AA is deciding on a model that only has F on a small number of routes, means we can conclude that UA is more successful with their F product than AA is.

I think that if UA thought their GF product was a key driver for their business model, it would be treated much more like EK's (or even LH's), with the soft product touched up quite a bit. It is clearly not; a soup course on top of a C meal seems like minimal effort to differentiate F and C at best. With the arrival of new aisle-access, lifeflat longhaul C products at competitors (AA and DL), the differentiation seems to be getting smaller.

There's also no sign that UA is refreshing their IPTE product in F (something CX, SQ, AA, BA and LH have all announced recently in THEIR F cabins), their recent 763 refurb post-merger did not include F seats (contra their pmUA 763s), and no UA 788s have shown up with F seats. I'll happily reconsider this once I start seeing some new planes with globes on the tails sporting 3-cabin F cabins.

To try to make this on-topic... EK seems to make consistent profits:

http://www.theemiratesgroup.com/engl...al-report.aspx

Wow, a well composed and clearly articulated response--thank you! I actually agree with your assessments for the most part.

I will point out that Emirates profits for a year are about comparable to what AA, DL, and UA can make in a quarter, however.

Again, I say that those state-owned enterprise carriers like EK, SQ, EY, TK, CX, etc. seem to be the only ones with the "tremendous" service and amenities and outrageous suites--with LH being the biggest exception. That says tons about LH and what it is able to do as a true private enterprise, and it reflects the challenges with other private enterprise carriers like UA, DL, AA, BA, AF, and the like in competing with those state-owned enterprises. It's easier for more authoritarian states like Thailand, China, UAE, and Singapore to build airports where and how they want compared with the industrialized and more democratic West, and it's easier IMO for those state-owned enterprise carriers to implement more fabulous offerings without the same profit concerns as their counterparts in the West, too.

eponymous_coward Aug 28, 2014 5:59 pm


Originally Posted by bhrubin (Post 23440637)
Wow, a well composed and clearly articulated response--thank you! I actually agree with your assessments for the most part.

I will point out that Emirates profits for a year are about comparable to what AA, DL, and UA can make in a quarter, however.

Again, I say that those state-owned enterprise carriers like EK, SQ, EY, TK, CX, etc. seem to be the only ones with the "tremendous" service and amenities and outrageous suites--with LH being the biggest exception. That says tons about LH and what it is able to do as a true private enterprise, and it reflects the challenges with other private enterprise carriers like UA, DL, AA, BA, AF, and the like in competing with those state-owned enterprises. It's easier for more authoritarian states like Thailand, China, UAE, and Singapore to build airports where and how they want compared with the industrialized and more democratic West, and it's easier IMO for those state-owned enterprise carriers to implement more fabulous offerings without the same profit concerns as their counterparts in the West, too.

Two things:

      bhrubin Aug 28, 2014 6:02 pm


      Originally Posted by eponymous_coward (Post 23440863)
      Two things:

          I agree totally with those assessments.

          Calchas Aug 28, 2014 7:45 pm


          Originally Posted by bhrubin (Post 23440637)
          Again, I say that those state-owned enterprise carriers like EK, SQ, EY, TK, CX, etc.

          CX is not state owned.

          Always Flyin Aug 28, 2014 8:31 pm


          Originally Posted by bhrubin (Post 23440174)
          You nailed it on the head that UA, AA, and DL have much bigger profits than SQ, EK, CX, and the like. Everyone loves to talk about the amazing service and seats on those 5 star airlines that basically are state-owned enterprises with state subsidies that allow them to offer such amenities.

          You have a, shall we say . . . unique . . . view on what constitutes a state-owned enterprise and what constitutes state subsidies.

          zxsuxr Aug 28, 2014 11:18 pm


          Originally Posted by 84fiero (Post 23433362)
          I'm curious, how do those compare in price to an F ticket (generally speaking)?

          $3500-$8000 per hour.... such a big range accounts for aircraft, light-Citation V, mid Learjet 35, G200 and heavy G550, Global XRS
          do the math.

          DYKWIA Aug 28, 2014 11:30 pm


          Originally Posted by bhrubin (Post 23440637)
          Wow, a well composed and clearly articulated response--thank you! I actually agree with your assessments for the most part.

          I will point out that Emirates profits for a year are about comparable to what AA, DL, and UA can make in a quarter, however.

          Again, I say that those state-owned enterprise carriers like EK, SQ, EY, TK, CX, etc. seem to be the only ones with the "tremendous" service and amenities and outrageous suites--with LH being the biggest exception. That says tons about LH and what it is able to do as a true private enterprise, and it reflects the challenges with other private enterprise carriers like UA, DL, AA, BA, AF, and the like in competing with those state-owned enterprises. It's easier for more authoritarian states like Thailand, China, UAE, and Singapore to build airports where and how they want compared with the industrialized and more democratic West, and it's easier IMO for those state-owned enterprise carriers to implement more fabulous offerings without the same profit concerns as their counterparts in the West, too.

          Note that DL, AA, UA would be out of business if it wasn't for Chapter 11 protection. Is this any better than 'state subsidies'?

          joshwex90 Aug 28, 2014 11:34 pm


          Originally Posted by bhrubin (Post 23440637)
          Wow, a well composed and clearly articulated response--thank you! I actually agree with your assessments for the most part.

          I will point out that Emirates profits for a year are about comparable to what AA, DL, and UA can make in a quarter, however.

          Again, I say that those state-owned enterprise carriers like EK, SQ, EY, TK, CX, etc. seem to be the only ones with the "tremendous" service and amenities and outrageous suites--with LH being the biggest exception. That says tons about LH and what it is able to do as a true private enterprise, and it reflects the challenges with other private enterprise carriers like UA, DL, AA, BA, AF, and the like in competing with those state-owned enterprises. It's easier for more authoritarian states like Thailand, China, UAE, and Singapore to build airports where and how they want compared with the industrialized and more democratic West, and it's easier IMO for those state-owned enterprise carriers to implement more fabulous offerings without the same profit concerns as their counterparts in the West, too.

          Well LH doesn't have suites or outrageous offerings on the level of EK, EY, or SQ. They have a great F product, but it's still a great seat - not a suite.

          LX also offers a fantastic F product, though you could make the argument that they're the same airline


          Originally Posted by eponymous_coward (Post 23440863)
          EK is doing a ridiculous amount of expansion/plane buying. That impacts profits. They're doing the Amazon-style "go for market share" thing. USA airlines, in a very mature market, are considerably more restrained.

          Fair enough - time will tell whether when they've "finished" spending tons of outlay costs, we see a drastic change in profits.

          3 things to watch though:
          1. Once you've gotten into the habit of spending, it's hard to break it, especially when airlines like EY are trying to outdo you every step along the way
          2. All these outlays could very mean high variable costs to maintain, even when the fixed sunk costs finish
          3. Amazon is great. But not their profits. In an effort to gain market share, they've lost profit

          joshwex90 Aug 28, 2014 11:37 pm


          Originally Posted by DYKWIA (Post 23441995)
          Note that DL, AA, UA would be out of business if it wasn't for Chapter 11 protection. Is this any better than 'state subsidies'?

          Government funding (meaning no need to rely on your actual revenue) is very different than bankruptcy protection

          DL2SXM Aug 29, 2014 12:50 am


          Originally Posted by ukdoctor (Post 23432606)
          People who can afford first but don't travel enough to justify a private jet???

          Deleted


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