More Fliers Pay Up for Premium Seats

By Barbara De Lollis

United and American airlines played catch-up last week when each announced plans to install business-class seats that recline into flat beds on their international planes.

Other international airlines have already done that to attract the growing number of international travelers who want big seats and attentive service on long flights — and can afford to pay thousands of dollars for it.

More than 694,000 people in May bought business- or first-class tickets on major airlines between the USA and Europe, solidly beating the latest 12-month average of 606,432 and surpassing pre-9/11 levels by 11%, according to the International Air Transport Association’s latest data. More than 4 million economy fliers crossed the Atlantic in May.

Demand for premium flying has been so brisk, it’s let upstarts Eos, Maxjet and Silverjet cater only to premium passengers between New York and London area airports. The start-ups offer 20% of premium capacity on the London-New York route, the IATA says.

U.S. carriers such as American were examining business-class cabin upgrades when the 9/11 terror attacks sent business into a tailspin. Now, they’re making money again. “Now we recognize that we need to make some investments to catch up with some of the Asian carriers and a couple of the European carriers that have gotten ahead of us,” says David Cush, a senior sales executive at American.

Airlines are betting that making air travel less stressful will win customers and justify big ticket prices, especially to corporations that keep a tight rein on expenses.

“As much as (companies) are cost-conscious, they’re also much more employee-conscious,” Cush says. “They want a well-rested employee when they arrive in Europe, in particular. They’re willing to pay more money if they get a more productive employee.”

Depending on the airline, premium ticket holders can use private airport lounges; obtain speedier access through security; rest on large seats that fold down into flat beds; and eat gourmet food.

American’s last-minute business-class fare from New York to London Heathrow is about $8,300 round trip. Silverjet’s similar fare is about $3,000 between Newark and Luton Airport, north of London.

Silverjet, which fills almost three-quarters of its 100 seats per flight, offers rapid check-in so customers can arrive 30 minutes before departure. “It’s not just about the beds,” says Silverjet CEO Lawrence Hunt. “What our consumers are looking for is the whole experience, things like our 30-minute check-in. It just makes the whole traveling experience so much more relaxing and stress-free.” (c) Copyright 2005 USA TODAY, a division of Gannett Co. Inc.