BA Upgrades, Adds Seats To Meet Transatlantic Business-Class Challenge
Entrenched transatlantic giant British Airways is trying to attract more high-yielding business class customers with the upgrade of its Club World cabin, as new transatlantic entrants launch, evolve and continue to challenge established players' dominance.
British Airways is courting front-of-the-plane customers with a £100 million overhaul of its Club World seats. In addition to new lie-flat sleeper seats and an upgraded on-demand television system, it is taking inventory out of economy to accommodate more premium business—a segment the carrier said has been growing year over year.
Through its overhaul, BA said Club World inventory on long-haul flights would increase by about 8 percent. The carrier said premium cabins represent 20 percent of its capacity and an even higher percentage of revenues.
British Airways said premium business grew more than 8 percent last year. "Our premium cabins are our most profitable segment. We are reconfiguring our aircraft to increase Club World capacity by 8 percent, moving from 38 to 52 seats on some of our Boeing 747 aircraft," CEO Willie Walsh last month said upon unveiling the new Club World cabin in London.
The carrier began featuring its new premium class product on flights last month and anticipates and 18-month phased rollout across its long-haul fleet of 57 Boeing 747s and 43 Boeing 777s.
The centerpiece of the Club World cabin overhaul is the carrier's new lie-flat bed, which measures six feet long and is 25 percent wider than its current offering. New privacy dividers between seats can be adjusted electronically. Other amenities include laptop storage, power sockets and an onboard Club Kitchen where customers can self-serve hot and cold snacks during the flight.
British Airways also is upgrading its on-demand entertainment system in every cabin.
For first class passengers, BA will introduce turndown service on overnight flights and new catering options in January.
As BA banks on more travelers paying a premium for its new services, transatlantic entrants are working to shift share from the carrier—both from economy passengers seeking a service upgrade and business class passengers seeking a pricing downgrade.
Silverjet, a new U.K.-based transatlantic all-business-class carrier, last week announced plans for its inaugural flight on its flagship Newark-Luton route to take to the skies on Jan. 25.
Silverjet CEO Lawrence Hunt earlier this year told BTN that the carrier planned to launch twice-daily service on 100-seat Boeing 767s between Newark International Airport and Luton Airport, which is about 30 miles outside London. Silverjet said fares are available for bookings, with roundtrips starting at $1,798.
Hunt earlier this year said the carrier eventually would increase capacity on its flagship route and expand to other markets. "We think there's enough capacity in the market for three- or four-times-a-day service between London and New York, so we'll grow that as quickly as the demand allows us to," Hunt said. Silverjet in three years hopes to serve four routes—two outside of North America—with 10 aircraft.
The carrier said it would embark on a sales strategy to court New York-area business and leisure travelers who seek premium services—including flat beds, an entertainment system with movies, games and television shows, lounge access on both sides of the Atlantic and gourmet meals that passengers must order prior to the flight.
Silverjet competitors Eos and MaxJet also have roles in the latest round of transatlantic expansion. In March 2007, MaxJet will commence daily service on its flagship Washington Dulles-London Stansted route, except on Saturdays.
The carrier last month launched twice-weekly Las Vegas-London service, its third U.S. departure point to Stansted. MaxJet last month appointed former chairman William Stockbridge as president and CEO, assuming the duties of Gary Rogliano.
Eos Airlines early last month secured $75 million in investments to expand its fleet of Boeing 757 aircraft to include new routes next year. The carrier in September launched its second daily flight between New York and London.