Worth paying the premium

Article originally appeared in TravelWeekly Australia

As airlines battled it out in the business class cabin, other sections of the aircraft were forgotten about. But, as Justin Wastnage explains, that dogfight has now moved further back down the plane

With Qantas launching premium economy on its long-haul services in mid-March, many of your clients will now have a real choice between economy class and business class.

Premium economy has been available in Australia for several years, with British Airways (BA) and Virgin Atlantic among the airlines to already offer the hybrid class. But John Borghetti, executive general manager at Qantas Airways, said the time is right for the national carrier to follow them.

Borghetti said that the "arms race" in business class seating has created a "gulf" between economy and premium seating where previously none existed. "Five years ago there was no need, but then came flat beds, then everyone needed flat and horizontal and so it goes on. But there is now a niche in the market for it," he said.

Unlike BA's World Traveller Plus, Borghetti believes Australian straightforwardness demands a straightforward name. Just like the Australian national carrier's loyalty scheme before it, simply called Frequent Flyer, the carrier's first foray into an enhanced cabin version of coach class travel was christened premium economy. "You cannot criticise Qantas's marketing, that's been proven over the years. We call it what it is, instead of coming up with a sexy name like 'blue class'," Borghetti said.

Qantas started flying the new service from April 1, with the four Boeing 747-400s that ply its Kangaroo Route to London via Bangkok and Singapore being the first aircraft to be refitted with the new cabins. Johannesburg services from Sydney received premium economy soon after, followed by Melbourne to Hong Kong services in mid-May and from Sydney by early August. The airline's Airbus A380s coming on stream at the end of the year will also feature the new class.

Premium economy aircraft will have 32 new Marc Newson-designed seats in a two-four-two layout in place of 60 standard economy places.

The seat itself is a clear advancement on coach. Qantas's seats are exactly half a metre wide, with a full metre of space, or pitch, between each seat and the one in front on most of the 747s. Virgin Atlantic's seats are one centimetre wider and offer the same pitch; as do those from BA, albeit over two centimetres narrower. Qantas's main local rival, Singapore Airlines, has 51cm wide seats in its Executive Economy section of the Airbus A340-500 it flies non-stop to New York and Los Angeles, but each seat has an inch less pitch.



In other words, the seats are pretty similar. But premium economy is more than comfy seats. Sitting in the Qantas version, you'll notice several new features that differentiate it from economy class. Laptop power cables come built in, as does on-demand television with bigger screens than in standard economy. Qantas also offers an upgraded menu, "inspired by Neil Perry". It is better than the economy fare, but not actually created by the Rockpool chef, as its business and first class menus are. But the wine is better, with selections made by the Qantas Wine Panel Members rather than the mini bottles they offer you down the back.

Airline comparison site Seat Guru says that premium economy tickets generally cost 95 per cent more on Pacific routes, but only 85 per cent more on Atlantic or Asian routes. The Qantas fare from Sydney to London will be around A$4567, or "exactly mid-way between economy and business," said Borghetti. However, in terms of value for money, Seat Guru says premium economy is only worth a 20 per cent premium. It offers the tip that: "If you book closer to your departure date, premium economy is generally only 35 per cent more expensive than your standard economy fare. The extra cost can be as low as 10 per cent more, so remember to ask about premium economy if you have a last minute economy booking."

There is also more choice than you might think. As Virgin Atlantic was quick to point out, Qantas is behind the premium economy curve, having initially been resistant to it. In the past decade Air New Zealand, All Nippon Airways, BA, Taiwan's EVA Air, Japan Airlines, Singapore Airlines, Thai Airways International and Virgin Atlantic have all introduced versions of the third way of service into the Asia Pacific region, with another dozen carriers globally offering the class.

Where Qantas has an advantage, however, is in its loyal customer base of Frequent Flyers. "Premium economy is aimed at business travellers who travel economy or the older generation who can pay for more comfort but not as much as business class," Borghetti says. Small and medium-sized enterprises have been targeted through specific advertising and mail outs.

Experience from other airlines shows that few people downgrade from business to premium economy, but rather treat themselves for long-haul flights. Borghetti is a man known for reading the Australian avaiation landscape well, so you can believe his enthusiasm for the product, even if you do not believe the hype.