'Is Flying First Class Doomed?'
#61
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Join Date: Dec 2009
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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EU) flights don't even claim an "F" section, but rather "business" which is nothing more than a middle seat that's been replaced by a tray.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?
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EU) flights don't even claim an "F" section, but rather "business" which is nothing more than a middle seat that's been replaced by a tray.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?
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.

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)
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).
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).
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.
#62
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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)
OK, but are they wrong? Compare the profits at UA, AA, and DL to the profits at SQ, EK, EY, etc.
#63
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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!
#64
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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.
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).
#65
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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
#66
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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
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
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.
#67
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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.
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.
#70




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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.
#71
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#72
Ambassador: Emirates Airlines
Join Date: Sep 2004
Location: Manchester, UK
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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.
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.
#73
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Join Date: Dec 2009
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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.
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.
LX also offers a fantastic F product, though you could make the argument that they're the same airline
3 things to watch though:
- 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
- All these outlays could very mean high variable costs to maintain, even when the fixed sunk costs finish
- Amazon is great. But not their profits. In an effort to gain market share, they've lost profit
#74
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