Premium economy class seats find favour with fliers

The premium economy class gives fliers more leg room, better entertainment and services on the payment of around 40% more than what an economy seat costs. Photo: AFP

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Updated: Sun, Mar 17 2013. 11 36 PM IST

Mumbai: Premium economy seats appear to be increasingly finding favour with fliers on airlines such as Virgin Atlantic Airways Ltd, Cathay Pacific Airways Ltd and British Airways Plc.

The premium economy class gives fliers more leg room, better entertainment and services on the payment of around 40% more than what an economy seat costs. It allows airlines an opportunity to earn more revenue by bridging the gap between economy and business class.

“In 2012, we saw a nearly 60% increase in premium economy passengers on the Delhi to London route, and a 150% increase on our Delhi to Newark route. We’re seeing a similar trend develop out of Mumbai,” said Stephen King, general manager of Virgin Atlantic India.

Fliers get wider seats with more leg room besides dedicated check-in counters and priority boarding facilities. Some airlines offer better entertainment options and additional space to stow personal items.

Virgin Atlantic offers nearly 6,000 seats a month in premium economy into and out of India, according to King. Virgin Atlantic has increased the number of premium economy seats to 48 from 35 on its A330-300 aircraft that connect Delhi and Mumbai.

While India remains a price-sensitive market, British Airways said its research showed that more people are demanding greater comfort and quality at an affordable price.

“I find business class very expensive. The premium economy give me a sense of value for money while lending some respectability by allowing me priority check-in and boarding,” said Ronnie Sengupta, a 40-year-old businessman who flew on British Airways in January.

Analysts said demand for premium economy seats is robust.

“There is demand for premium economy travel with Indian corporates and a set of economy class travellers as they enjoy enhanced comfort at a lower cost compared with business class travel,” said John Nair, vice-president, business travel, Cox and Kings Ltd, a travel agent.

A Mumbai-London-Mumbai premium economy British Airways ticket on 15 March for travel in mid-May and return at the end of the month will be 37.38% more than the economy fare and 52.05% less than business class, a travel consultant said. For Virgin Atlantic, the fare is about 59.23% more than its economy fares and 41.52% lower than business class fare.

Deutsche Lufthansa AG is planning to introduce a premium economy product. “Customers increasingly expect a differentiation in various products and services,” Lufthansa said in an emailed note. “The same trend is taking place in airline industry and with the decision to introduce a premium economy product, Lufthansa will be able to offer its customers a differentiation in the economy class product.”

 

BY SHIV KUMAR 

   PGDM 2 nd sem