The sky's the luxury limit

17-Jan-08 Paul Blaney

With the A380 now on the scene, and a variety of new players, the luxury flight market has never been more competitive.

Uncertainty has been a feature of the scheduled flight business in recent times, but premium class bucks the trend. Operating against a background of volatile fuel prices, environmental challenges, increased competition and the prospect of 'Open Skies', some airlines are taking stock while others strive for growth. One positive trend, however, has been an increased demand for superior products. This has given rise to a number of all-premium carriers - mostly transatlantic - while other airlines have responded by increasing capacity in Upper Class.

"We've seen further enhancements in First Class with Jet Airways and the new A380, offering what are effectively private cabins," notes Paul Rutherford, group head of aviation at Travelsphere. "All-business-class services are hitting the market and major carriers are introducing luxury-only products, like Lufthansa's transatlantic service from Frankfurt. Private jets are becoming increasingly popular but, as business becomes more global, their limited range can be an issue."

Competition from private jets, as well as improved rail service on Eurostar, will challenge major carriers, in Europe especially, to pursue fresh innovation. Meanwhile, a more serious challenge is posed by environmental concerns. "Sadly, airlines are an easy target for environmentalists," says Rutherford, "but if taxes and charges increase then, in the long term, flying could become more of a luxury item."

One example of an airline making an effort to reduce impact on the environment is Virgin Atlantic. The airline has placed the largest European order of Boeing 787 Dreamliners, which claim to be 27% more fuel-efficient than the planes they are to replace. In addition, the company is testing the feasibility of biofuels. With regard to reducing its contribution to climate change, Virgin is also investigating schemes to reduce carbon emissions on the ground, both from planes and ground-based activities, and aims to improve fuel efficiency by 30% by 2020. Other major airlines are also working to renew their fleets as well as reducing emissions on the ground.

With its larger capacity, the new A380 airbus will be less harmful to the environment and may also help to free up slots at busy airports such as Heathrow. At present only operated by Singapore Airlines, the A380 is predominantly a long-haul aircraft. Its first scheduled flight, to Sydney, took place in October, and the reception has so far been favourable. "The aircraft will change our customers' travelling experience," says Stephen Forshaw of Singapore Airlines. "The plane is quieter, more environmentally friendly, and it offers much more space, privacy and comfort. The aircraft is configured to seat 471 passengers and loads are close to full. Premium customers travel in their own suite, complete with fully flat bed. Business Class seats, at 34 inches (86cm) wide, are the largest in their class."

To date, Singapore has placed orders for 19 A380s, with the next two (scheduled for delivery this month and February) to be deployed on the London-Singapore route, and a Tokyo service scheduled to start in mid-2008. Several other airlines have placed orders, but have yet to announce details of routes or on-board innovations.

Etihad Airways, on the other hand, which has four A380s on order, has chosen to push back delivery. The airline has decided to focus first on increasing seat factor to around 75 or 80 per cent on certain routes. "Some of the big Asian and European carriers who've ordered A380s are already operating 747s at 80 per cent of their seat factor," explains a spokesperson for Etihad. "For them, it's a big step. But for us, it's a huge jump. We felt that the timing wasn't right to introduce the aircraft."

The six airlines featured over the next three pages were selected to show what's on offer in a cross-section of small and large, established and newer players, in the premium scheduled flight market.

AIRLINES

FINNAIR

Service highlights: Seat pitch in business class is impressive, ranging between 62 and 63 inches (158-160cm), while the ratio of cabin crew to customers is also high: four staff to 42 passengers. At present, some 10% of customers on long-haul flights travel business class.

On the new Airbus A340-300E aircraft, as well as full menus and an extensive wine list, self-service snack bars have been added to beat those between-meals cravings. Passengers can send and receive short texts and emails from their seats, as well as make international calls.

On board all Airbus A340-300E and Boeing MD-11 aircraft, the business-class section has lie-flat seats together with complimentary pillows and duvets. All A340 aircraft are equipped with audio and video on-demand entertainment systems, which come with active noise-reduction headsets.

What's new: Finnair's monthly traffic between Europe and Asia is currently growing at a year-on-year rate of 30%. The company will launch a route to and from Seoul, South Korea, on 2 June.

New menus will be introduced in April, while brand-new Airbus A340-300Es will be added to the fleet this summer.

Client fit: Finnair's key customers are travellers taking advantage of the shorter flight times between Helsinki and Asia. As well as royalty, executives and chief executives, the carrier's business class is popular with Japanese couples making annual leisure trips to Europe. Last but not least, the airline is the official carrier of Santa Claus - presumably when his sleigh is out of service.

Destinations: Finnair has become a major player in traffic between Europe and Asia. Intercontinental destinations include Delhi and Mumbai in India, Beijing, Shanghai, Hong Kong and Guangzhou in China, Tokyo, Osaka and Nagoya in Japan, and Bangkok in Thailand.

The airline also operates several daily flights from Helsinki to all major European cities. Timetables are organised so as to facilitate connections with Asian flights. Finnair's latest scheduled destinations in Europe are Ljubljana, Bucharest, Gdansk and Lisbon.

Price: From £3,180 (taxes included) for a return flight in business class from London to Beijing.

Contact: 0870 241 4411; www.finnair.com

ETIHAD AIRWAYS

Service highlights: The national airline of the United Arab Emirates is based in the UAE's capital, Abu Dhabi. Launched just five years ago, it has quickly become a major player in the premium flight market. Service highlights include a multilingual staff, in-flight entertainment with a 15-inch (38cm) screen, lie-flat seats and a dinner menu that features Asian, Continental and Middle Eastern options.

First-class cabins have either 10 or 12 seats that recline into six-foot-long (183cm) beds. Each seat has its own mood lighting, pneumatic lumbar support and a built-in massage facility. The seats also rotate 180 degrees for a business meeting or intimate dinner. Each seat comes with a 23-inch (58cm) LCD screen, with a plug-and-play feature allowing passengers to upload their own games and music. In addition, seats come equipped with two USB ports and an RCA power socket for laptops.

Business-class cabins have 28 or 30 seats, with a pitch of 88 inches (224cm) and built-in massagers. Each seat also has a 15-inch (38cm) LCD screen, also with plug-and-play functionality. In terms of on-board hospitality, Etihad has one member of the cabin crew assigned to every four first-class passengers. Amenity bags are designed and filled by Bulgari. Food is prepared according to strict Halal requirements, with a variety of special meals to suit dietary, religious or cultural requirements.

On the ground, Etihad Chauffeur offers first-class passengers door-to-door service to and from Heathrow (complimentary within a 100-mile radius), as well as within the UAE, Sydney and Bangkok. In addition, fast-track facilities and access to the SAS Lounge are provided at Heathrow.

What's new: Two routes launched on 28 September 2007 were Abu Dhabi to Singapore and Abu Dhabi to Brisbane. Flights from Abu Dhabi to Kathmandu, the airline's ninth new destination in 2007, started on 28 October. Furthermore, from March 2008, Etihad will be extending its service between Abu Dhabi and Sydney to 11 flights a week.

As well as supporting its existing network with greater frequencies and connections, the airline's principal goal for 2008 is the launch of new routes from Abu Dhabi to India and China. Among eight Indian cities on the Etihad wish list are Bangalore, Hyderabad, Chennai and Calicut.

Client fit: Rotating seats in First Class make for an intimate fine dining experience that is particularly popular with honeymooners.

Etihad has also announced two sports sponsorships in recent months: Chelsea Football Club and the Harlequins Rugby Club. The airline will be assisting both clubs with transport where necessary.

Destinations: Operating from its hub in Abu Dhabi, Etihad currently flies to 45 destinations in the Middle East, Europe, North America, Africa and Asia. It operates 19 services a week from Heathrow and seven flights per week from Manchester to its home base in Abu Dhabi.

Price: The first-class lead-in fare for Heathrow to Abu Dhabi is £1,297, including taxes.

Contact: 0870 777 0793; www.etihadairways.com

VIRGIN ATLANTIC

Service highlights: The Upper Class Suite offers the "longest bed in Business Class" - a leather armchair that flips over into a bed with mattress. A beauty therapist offers neck and scalp massage, zone therapy massage and hot hand treatments.

Other highlights include an on-board bar and the Freedom Menu, with snacks and meals that can be ordered at any time during the flight. The V-port system has 300 hours of video on demand, and there's a choice of between 14 and 20 video channels, plus audio channels and games.

On-the-ground benefits are a particular strength for Virgin. These include dedicated check-in and priority boarding, as well as the Unique Clubhouse lounges at selected airports, featuring a health and beauty salon. The Heathrow Clubhouse has a poolside lounge, Multiscreen, observation deck, sky lounge, library, playground/video games room, study, bar and brasserie/deli.

What's new: The new Upper Class Wing at Heathrow Terminal 3 (billed as the "world's fastest airport check-in") allows business passengers to get from their limos to the Virgin Atlantic Clubhouse in 10 minutes. Check-in formalities are completed before the passenger walks through a dedicated security channel to the clubhouse.

Client fit: Busy business travellers are bound to appreciate the speed and convenience of the new Upper Class Wing at Heathrow.

Destinations: Based at Gatwick, Heathrow and Manchester, Virgin Atlantic operates flights to a range of long-haul destinations. In 2007, the airline launched services to Chicago in April, and to Jamaica and Mauritius in October. At present, no new routes are planned for 2008.

Price: An Upper Class return fare from Heathrow to New York, with four limo journeys, is £2,837, including taxes and charges.

Contact: Upper Class Reservations, 08701 909 090 www.virginatlantic.com

SOUTH AFRICAN AIRWAYS

Service highlights: SAA recently fitted its award-winning flat-bed seats in Premium Class on all international routes served by an Airbus. In both 2005 and 2006, the seat was voted "most comfortable Premium Class flat bed seat in the world" by Skytrax. The seats have a 73-inch (185cm) pitch and three settings (upright, bed and cradle) plus leg rest, lumbar support and back rest. Interactive entertainment systems come with 10.4-inch (26cm) touch screens and, for passengers who have brought their own gadgets, the 110v AC PC power plug interfaces with a normal European two-pin plug.

A "restaurant in the sky" concept allows business-class passengers to order a meal at any time during their flight. On the ground, SAA passengers can unwind in Baobab Lounges in Johannesburg, Cape Town and London. Features of the lounges include a served bar, business modules with internet, fax and photocopying facilities, showers, children's areas and separate smoking sections. SAA also has arrivals lounges at Heathrow and O.R. Tambo International Airport. Both have showers and hi-tech business facilities as well as a breakfast service.

What's new: SAA is re-structuring at present and reviewing its entire route network. For 2008, the airline plans to extend its coverage of the African continent, which is one of SAA's key profit drivers. The number of return flights to Nairobi will increase from seven to 10 per week, and to Mauritius from seven to eight. The carrier will also realign its New York flights, operating four flights via Accra, with three via Dakar. Lounge facilities in Africa have been targeted for upgrade, while business-class passengers to Harare, Lusaka and Lagos will soon have access to new Premium Class departure lounges.

Client fit: In the past year, the airline has welcomed on board Prince William, Oprah Winfrey, Samuel L. Jackson and Westlife. SAA is also the preferred carrier of former South African president Nelson Mandela.

Destinations: SAA operates direct flights to 20 African cities and nine international destinations, including New York, London, Hong Kong, Mumbai and Frankfurt.

Price: Business class from Johannesburg to Frankfurt costs £3,130 return.

Contact: 0870 747 1111; www.flysaa.com

EMIRATES

Service highlights: Emirates recently announced plans to enhance its first-class suites and introduce lie-flat massage seats in business class across its long-haul Boeing 777 fleet. Existing aircraft will be retro-fitted and 24 new aircraft delivered complete with the enhanced features. The new first-class suites, featuring leather upholstery, will also be more spacious. The massage seats will recline to a 78-inch (198cm) bed.

Emirates' 'ice' in-flight entertainment can be accessed via digital LCD touch screens - 23 inches (58cm) in First Class and 17 (43cm) in Business.

What's new: The Emirates fleet recently topped three figures, and the carrier has announced a £17bn order for new aircraft. These include 50 A350-900s and 20 A350-1000s, the first of which will be delivered in 2014. A further 12 orders for Boeing 777-300ERs mean that Emirates is set to become the world's largest 777 operator. The airline also has a total of 58 A380s on order, the first of which will be delivered in August 2008.

The airline's most recently added routes are Dubai to Venice, Newcastle, Sao Paulo, Ahmedabad, Toronto and Houston. Further routes are expected to increase Emirates' destination total past the 100 mark by year-end.

Client fit: With its extensive network, Emirates has a good balance of business and leisure travellers.

Destinations: Emirates operates 98 non-stop flights a week from the UK to Dubai, including five services a day from Heathrow, three from Gatwick and two from Manchester and Birmingham. The airline currently flies from Dubai to 97 cities in 61 countries.

Price: A first-class return ticket from London Gatwick to Dubai costs from £2,458.

Contact: 0870 243 2222; www.emirates.com/uk

BRITISH AIRWAYS

Service highlights: The airline prides itself on its customer service, network and timetable on its long-haul, short-haul and domestic flights. Long-haul routes offer First Class and Club World (business class), while Club Europe is the discerning option for short haul.

Business class has featured fully flat beds since 2000 and the Club World cabin has just been relaunched. This is available on all routes operated by B747 aircraft, and will be rolled out across the B777 fleet in the New Year. The cabin offers 6ft (183cm)-long, 25-inch (64cm)-wide fully flat beds, improved privacy, greater storage capacity and a Club Kitchen, where customers can help themselves to hot and cold snacks in between the meal service. Audio and video on demand is being rolled out across British Airways' long-haul fleet.

The airline employs a 'Culinary Council', made up of 10 world-renowned chefs, a food critic and a master of wine. First class, business class and Gold and Silver Executive Club members can access lounges across the network.

Elemis has just joined the airline as a spa partner, providing treatments within lounges at London Heathrow and New York, JFK.

The airline will move into its exclusive new home, Terminal 5, at London Heathrow airport on 27 March 2008, promising clients smooth, simple and stress-free travel. Above all, BA is giving customers back their time to spend as they choose. They will move swiftly through the departures area, giving them the luxury to do as they like once they are 'airside', be that relaxing, eating, shopping or working, all within a state-of-the-art environment.

What's new: Flights from Gatwick to Poznan and Antalya begin in summer 2008. Along with a new daily service from Gatwick to Genoa, the airline is moving its flights to Dallas and Houston from Gatwick to Heathrow and increasing frequencies to JFK, Washington, Seattle and Orlando. Algiers flights also move from Gatwick to Heathrow, while Warsaw flights move from Heathrow to Gatwick.

Orders have been placed for 12 A380s and 24 Boeing 787s, with further options for seven A380s and 18 Boeing 787s. These will replace 34 aircraft and enable BA to grow capacity.

Client fit: First-class customers are traditionally 'influential individuals'. The airline also carries royalty, celebrities and sports personalities on a regular basis.

Destinations: BA flies to more than 140 destinations worldwide in the UK, Americas, Asia and the Pacific regions.

Price: BA flies from Heathrow- Beijing in business class from £2,481.

Contact: www.ba.com