Carriers Upgrade Amidst Corp. Downgrades
<B> Carriers Upgrade Amidst Corp. Downgrades</B>
By Judy Jacobs
Asian carriers are in the process of increasing their business and first class offerings, thus countering a move by many corporations to downgrade employees' air travel options.
A recent survey conducted by American Express showed an increasing number of companies rejecting first and business class travel in favor of economy class. The American Express Global T&E Expense Management Survey found that economy airfare accounts for 72 percent of all business travel, compared with business class, which accounts for 24 percent. Although this may be true internationally, Asian carriers, in many cases, haven't seen much effect.
"People were downgrading, but it hasn't had a significant impact on our business," said Irene Jackson Schon, spokesperson for Japan Airlines. In fact, a lot of JA's flights have a relatively small economy class, so they weren't affected when tourism decreased--business class made up the difference. "Because of the modular system of our aircraft, we can have a different configuration on every route, and New York-Tokyo is one of the densest for business class travel. On that flight we now have 12 first class seats, 110 seats in business class and 200 in economy."
Cathay Pacific is another carrier with a heavy emphasis on business class traffic. "About three months ago, we increased the number of business class seats from 56 to 90 seats on the night flights to Hong Kong out of Los Angeles and New York," said Gus Whitcomb, the carrier's spokesperson.
All Nippon Airways has seen a decrease in Japanese business class travelers, thanks to the Asian economic crisis. "Over the past year or so there has been some downgrading by Japanese businesses, which means fewer Japanese business travelers," said Tom Fredo, ANA's spokesperson. At the same time, however, there has been an increase in U.S. business travelers. "These days we're seeing about 60 percent Japanese passengers in business class and 40 percent non-Japanese, whereas it previously would have been more like 80 percent versus 20 percent," he said.
To persuade more passengers to move into the front and top of their planes, Asian carriers have created everything from upgrades to new onboard facilities. ANA, for example, has installed a business corner on two new B747s that were deployed in April on its new daily Chicago-Tokyo service.
Located on the upper deck, the business corner features two workstations, each with a high-back swivel chair, a telephone, a fax machine and electrical outlets. First and business class passengers must supply their own computers. "This is new equipment installed on new aircraft, but if it proves popular, we'll install it on other planes," Fredo said.
Several carriers are offering free upgrades to lure people into the front of the plane. Asiana Airlines is offering all passengers who buy a full-fare business class ticket an automatic upgrade to first class, which consists of 12 sleeper seats on Asiana airplanes.
On Malaysia Airlines, those purchasing a full economy fare will be upgraded to business class, and those purchasing full business class will be upgraded to first class. In addition, all passengers flying in business and first class will be picked up from their homes by chauffeured sedans and delivered to the airport in their city of origin, anywhere in the United States.
Meanwhile, Cathay Pacific has lowered its price on upgrades for its All-Asia Pass, which includes 15 destinations in Asia and is a good buy for travelers who have business in several countries. Previously, it cost $1,300 to upgrade to business class and $2,300 to first class--each way. Now it's $999 and $1,999 each way, respectively.
Taiwan's EVA Air has created a fourth class of service, in between economy and business, which it calls Evergreen Deluxe or ED class. Each seat has a 38-inch pitch and a personal entertainment system, as well as a separate airport checkin counter and greater luggage allowances than those given economy class passengers.
As another type of enhancement, Thai Airways has created a buy-one-get-one-free deal called the Royal Companion Package. Those who purchase a full fare business or first class ticket can take a companion on the same flight at no additional charge. This applies to both one-way and roundtrip flights between Los Angeles and Bangkok, Tokyo and Osaka. However, passengers must depart by Sept. 30 to take advantage of this special offer.
Meanwhile, Singapore Airlines has spent $300 million on a total revamp of its fleet, which has resulted in an upgraded first and Raffles (business class as well as economy class) product on its B747s serving North America. First class seating has been reduced from 16 to 12 individual "mini-suites," which are sleeper seats of burr wood and leather that have a retractable desk and a 14-inch foldaway video monitor.
Raffles class was redesigned with seats that have 52-inch pitch, a privacy divider between adjacent seats, a personal in-seat reading light and an in-seat power supply for laptop computers.