What is Premium Economy?
Premium Economy is a set of separate services and seating class. It is different from the standard economy. It offers about 2 to 3 inches of seat recline, 5 to 7 inches of added leg rooms, 1 to 2 additional inches of seat width and the foot rests, lumbar support and the headrests are adjustable. It also offers larger TV screens and premium foods.
How much does Premium Economy Cost?
Even though there are a lot of determinants on the pricing of the airline tickets, we can look at a general pricing of different trips so as to have a rough estimate or idea of the costs. For flights over the Pacific Ocean that is United States of America, Asia or Australia, the premium economy is almost double the fare of the standard economy. That is about 95% more.
When is premium economy a good value?
For a passenger who is conscious about the cabin comfort, an approximate 15% more cost than the standard economy is fair enough. Fliers should also be on the lookout for offers and the day of the travel upgrades opportunities. Airlines tend to reduce the prices of the premium economies when they are no filled in time for the flight. Excellent Economies are a good choice when your employer does not want you to use the business class (Kuo and Jou, 2007).
How Premium Economy compares to Business Class
The business class fare is about 65% more than the Premium Economy Class ticket. Business class also offers approximately 50% more legroom, better food services, better recliners and high leg rests as well as headrests as compared to the premium economy class.
Merits and Demerits of the different versions of Premium Economy Class
Name: Extra legroom
Legroom: 38-inches on a Boeing 787-9 aircraft
Seat width A380: 18.5″
Seat width B777: 18.5.”
Estimated seat factor: 76%
Additional F and B services and amenities cost per passenger per flight: $10 per passenger per long haul flight.
Seat pitch: 40.”
Seat width A308: 19.”
Seat width B777: 19.”
Seat price: $40000
Aisle width: 19″
Estimated seat factor: 64%
Additional F and B services and amenities costs per passenger per flight: $30 per passenger per long haul flight.
Seat pitch: 38.’
Seat width A 308: 19.5.”
Seat width B 777: 19.5.”
Seat price: $20000
Aisle width: 19″
Estimated seat factor: 70%
Additional F and B service and amenity costs per passenger per flight: $20 per passenger per long haul flight.
What makes it unique?
Food rests that are adjustable, fleece, pillow, blanket, kit, hotter towels, improved allowance of the luggage, as well as better food services.
Impact of the Cabin Layout
The Premium Economy cabin configuration is usually 2.3.2 on wider aircraft it could even be 2.4.2. Passengers like comfort and so adding more seats to a business class would be detrimental. The seating layout and the cabin configuration will offer fliers more relaxation, comfort, personalization and flexibility. An airline that does not provide such support is more likely to experience losses. The more leg room on the Premium Economy planes offers fliers approximately 96.5″ pitch of seats. It is almost 15.2cm more than the economy offers. It also has a leg, and head rests with recliners that are better than the economy class. The premium economy classes are also wider thus the comfort difference is significant. The addition of the premium economy class to the cabin of the A308 could bring further complexities to the Airbus and the fleet of Emirates. The A308 is split between 2.3.4 classes variant. The curbs are the options for deployment.
However, some would argue that the cabin layout offered by different airlines does not enough impact on the business revenue but rather what impacts the income is the image or brand that airline wants to portray. Also, there is a new segmentation of students, and middle classes who are conscious of the costs prefer the economy class.
The Emirates Airline has three versions of the A 380 that it intends to introduce the premium economy class product. These three versions have varying configurations. The A 380 has few seats for the economy class. Usually, the A 380 economy class starts at the 43rd row on the main deck cabin, the business class last part is on the 26th row on the upstairs. The Airbus 380 has three categories of services that it operates (Mantur, 2016). The first class is a private suite that has a sliding door. It also comes with a shower cubicle. Then the second is the business class that is in a spread out the outline. Most of the seats here have direct access to the aisle as well some other seats down at the center. The last part is the economy class seats that are located on the main deck of the Airbus.
For many of its routes Emirates has partnered with Qantas Airlines, and Qantas Airlines is already offering the Premium Economy Class on the Airbus A380, so it is viable for Emirates airlines to introduce the premium economy class too. Also, most airlines already have the same product; Delta Airlines, American carrier, and the British Airways premium. If Emirates want to be consistent, it has only two cross sections to think about in the introduction the premium economy class. Because of its late move into the premium economy production, Emirates Airlines have a lot of options than most of the airlines. However, it will need a product that is reliable, quick and specific because of its sheer size. Emirates could stick with the already existing premium economy class that has been tested and tried; that is 2.3.2 upstairs on the A380 or 2.4.2 on the A380 main deck or 2.4.2 on the Boeing 777. The seats of the premium economy have 38″ recliner pitch and 19″ seat width.
Another option is using its larger size and market size to its advantage by going up market. It could introduce a position that is angled flat sleeper. Even though that is close to the business class that is found on the 777, Emirates has not announced that it will refurbish the Airbus. Emirates could also opt to go up market, that is on the A380, increasing the 3.3.3 cabin configuration downstairs. It could also enhance the 2.4.2 cabin pitch on the two class aircraft. Also, the airline can introduce a lounge or bar access for the premium economy class fliers.
Even though there are a lot of determinants on the pricing of the airline tickets, we can look at a general pricing of different trips so as to have a rough estimate or idea of the costs. For flights over the Pacific Ocean that is United States of America, Asia or Australia, the premium economy is almost double the food of the standard economy. That is about 95% more. The fare of the premium economy does not vary with time.
Route from London to Dubai
Standard economy class $500
Business class $2500 to $3000
Route of Melbourne to Hong Kong
Standard Economy class price was $1201
Premium Economy $2631
Business Class $6241
Way to Sydney to Paris
Standard Economy Class $1908
Premium Economy class $5583
Business Class $6482
Route of Melbourne to Los Angeles
Economy class $937
Premium economy class $2847
Business economy class $4653
Way to Sydney to Milan
Economy class $1735
Premium Economy class $2492
Business class $7393
The premium economy class will cost twice the standard economy seat price. For example, a standard economy return flight fare from Dubai to London is $500 but for the premium economy class, it should from $1000 to $1500 depending on the season and the number of fliers.
With the burgeoning middle class across the world and many people who are hungry for that extra comfort while flying, Emirates airline is a good place that has a remarkable opportunity for changes. The premium business economy will attract those individuals who are not only looking for more flexibility but also the chance to show that they have made in life even though they cannot afford the business class or the first class.
The introduction of the premium economy class will improve the economy of the Emirates Airline. The seats in the premium economy class cost at least twice as much as the standard economy class tickets. And this is the same in almost all the aircraft. However, during certain periods the card process could be higher or lower. For illustration, we can analyze samples of the return air tickets that were obtained from the websites of the airline’s popular routes randomly. The premium economy class will cost twice the standard economy seat price. For example, a standard economy return flight fare from Dubai to London is $500, but for the premium economy class, it should be from $1000 to $1500 depending on the season and the number of fliers.
Personal Learnings and Insights
As the gap between the business class and standard economy is growing, the launching of the premium economy class is also increasing, and it has been accepted by most airlines. The business class has more space than in the recent years; therefore, it is only logical and opportunistic to introduce the premium economy technology to fill this gap. The difference between the business class and the premium economy class is quite minimal.
From this assignment and the course, I have learnt that the most significant choices and decisions that affect airlines profit are the assigning aircraft and fleet planning process. An inefficient fleet assignment and plan would lead revenue loss and missed business revenue opportunities. The choices made in what type of fleet to choose has very significant impact on the daily airline operations. These decisions are even more complicated when dealing with airlines that need to grow and introduce wider ranges of new aircraft or changing the cabin layouts. Competition is also driving the fleet management and planning choices. Therefore, it is important that a comprehensive analysis of the complexity, uncertainty and the risk returns of all the options are detailed and considered so that the airline’s financial performance and efficient operation’s impact are documented.
Barnes, J., 2017. Measuring service quality in the low-cost airline industry.
Bazargan, M., 2016. Airline operations and scheduling. Routledge.
Kuo, C.W. and Jou, R.C., 2017. Willingness to pay for airlines’ premium economy class: The perspective of passengers. Journal of Air Transport Management, 59, pp.134-142.
Mantur, N., 2016. The Emirates: Airline Company or a global lifestyle brand? (Doctoral dissertation).