The Death of First Class?

Airlines’ first class today is far better than what we had ten years ago. More space, more privacy, and more comfort. But the decline of first class is accelerating this year. In 2008, British Airways had around 560,000 first class seats. By 2018, it had almost 100,000 less. In 2008, Delta offered almost 400,000 first class seats. Now, they have just over 200,000. First class is disappearing from airlines, but why?

If you are planning to spend your Christmas in London, this is how much you will pay for your ticket:

Travel Class	*Airfare for oneway (MYR)
First	17,703
Business	10,163
Premium Economy	5,314
Economy	2,434

*British Airways, Kuala Lumpur to London, 25/12/2019

The demand has fallen. One reason is the business class product has become good today. Passengers simply pay an affordable fare above economy but not as expensive as first class for a flat comfortable seat. For business travellers, many corporates could be concerned about employees’ convenience and productivity. Thus, they are willing to pay more to book better seats for their employees.

Malaysia Airlines recently rebranded their first suite as ‘business suite’. Business suite is an enhanced business class service at an attractive price point for passengers. Previous first class passengers can now opt for business suite with dedicated check-in counter, first class lounge, and a 50kg baggage allowance.

Some airlines offer ‘premium economy’, which is something quite different to the ‘economy plus’ option. Premium economy has its own cabin that provides more privacy for passengers. In addition, more legroom and better seats. Some airlines even provide priority boarding for premium economy passengers.

For frequent travellers, there is something far better than first class —— flight hailing. New shared ownership and ride hailing services are driving down the cost of private jets, and for the busy bigwig, it’s the perfect solution. Executives may value being able to schedule their flight times themselves rather than wait for a timetabled flight. And being processed through a private jet terminal is phenomenally faster. Smaller jets can land closer to the destinations too,  saving valuable business time.

There’s not much of a case for keeping first anymore. Airlines that do still offer first have two main reasons: (i) to provide upgrades from business class, an incentive for brand loyalty. But that case is now weakening, as most customers are happy in business. (ii) The ‘halo effect’, basking in the glow of its crowning glory. Take Emirates, for example; because their first class product is so very good, flyers begin to think economy on Emirates is somehow fancier as a result (Joanna Bailey, 2019).

The death of first class perhaps is good for majority of passengers. Why would you pay MYR 7,540 more when business is this good? If you really need more exclusivity, you will still be able to find it in some places: business suite, for instance. Replacing first class with business class perhaps could increase the number of passengers in a plane. From the environment point of view, this could reduce individual's carbon contribution. So yes, let’s welcome more business class on board!

Reference:

1. Gilbert Ott, Airlines Are Officially Ditching First Class, And Fast… www.godsavethepoints.com/

2. Joanna Bailey, First Class Is Disappearing From Airlines simpleflying.com/

3. Firdaus Hashim, Malaysia Airlines has rebranded the first class product offered on its Airbus A350-900s and A380s as 'Business Suite' www.flightglobal.com/