Saturday, November 16, 2024

Is first-class dead? The rise of ultra-luxury business class

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Hot on the heels of American Airlines, Air New Zealand and Turkish Airlines, Oman Air is the latest airline to ditch its first-class cabins for good.

Like many of the world’s bigger players, Oman Air is replacing First with a new Business Studio cabin. This latest product will feature predominantly on its London and Bangkok routes. The new seats are in addition to its current business class seat and will be cheaper than first class but at a premium to its standard business seats.

Oman Air’s Business Studio cabin:

Con Korfiatis, Chief Executive Officer of Oman Air told Fortune, demand for first-class has seen a diminished demand.” Oman Air’s new Business Studio will offer an 82-inch  seat pitch, privacy walls for every seat, a 23-inch personal screen, free Wi-Fi connectivity, and à la carte dining.

Oman Air’s move follows American Airlines, which announced plans to remove international first class when it refurbishes its business class cabins with the latest seats. Instead, American Airlines will offer a new Flagship Suite Preferred seat in the first row of the airline’s new Boeing 787-9 aircraft and on retrofitted Boeing 777-300 aircraft. The suites will offer more space, several storage areas, and exclusive amenities, perfect for executives looking for extra luxury when flying long distances.

Malaysian was one of the first airlines to remove its first class and add business plus seats, which currently offers its Business Studio in the old first class cabin. However, even this has been short-lived as the airline is due to retrofit its Airbus 350s with its new Collins Aviation Elevation business class suites in 2026, eliminating the Business Studios entirely. Financially, it is more lucrative to have all business class seats and business plus as you can have a small number of seats in the same cabin without needing extra staff and provide the same food and drink as business class. Passengers are really just paying for extra space rather than a wholly elevated cabin.

The latest trend is for the front row of business class to have larger suites which can be selected like a paid seat assignment and are great value for money for the amount of space. These can cost as little as $250 extra per flight, a huge contrast to first class which can cost as much as $6000 or more one way. Airlines are trying to maximize the revenue return for the front row where space can not be used as effectively as the rest of the cabin. Business class seats are designed to fit together efficiently by utilizing the dead space under the seat in front. As this is not possible in the front row, adding some extra space and features to increase the financial return on these seats makes sense.

And when Virgin Atlantic revealed its latest aircraft interiors on its Airbus 330neo, it added two Retreat Suites to the center of the front row, which also offer a companion seat for buddy dining. These suites have a 6 foot 7 inch fully flat bed, 27-inch touch screen with Bluetooth connectivity, and wireless charging. Customers can upgrade to the Retreat Suite at the time of booking for £300 ($390) per person one way. Air France also quietly revealed a similar concept with its new A350 business class cabins and Boeing 777-300ERs, which have two rows of these larger suites in rows one and ten. The modern seats also have wireless charging and bluetooth audio but are restricted to the airline’s top-tier frequent flyer club members until 72 hours before departure. The size of the sleeping area is particularly remarkable, with the huge ottoman area allowing passengers to sleep comfortably in any position they choose.

It is not just the seats that are getting an upgrade in business class. Recently, Qatar Airways announced that they would be serving caviar in business class on select routes such as London, New York, Paris and Sydney, marking a significant upgrade. The new caviar service can be ordered as a standalone snack or part of the onboard meals. The airline already has a business class that could rival many airlines’ first-class cabins, with dine-on-demand, private suites, and premium wine and champagne, such as the excellent Laurent Perrier Alexandra Rose Champagne that they recently served, which retails at around ÂŁ300 ($390) a bottle. The business class experience is so good that the airline has won the Skytrax World’s Best Business class 11 times.

This story was originally featured on Fortune.com

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