Major Airlines Adding Premium Service On Regional Jets

Through its regional American Eagle subsidiary last month, American Airlines became the latest major carrier to offer premium seating on regional jets. That change follows similar moves made in recent years by United Airlines, Delta Air Lines and its subsidiary Northwest Airlines to offer first or business class seats and services through regional feeder affiliates.

Premium seating on regional aircraft has grown in popularity in recent years, as majors and their feeders seek to tap into premium customers wherever they may fly and keep inflight offerings consistent, whether passengers are using mainline or regional service.

American Eagle last month said it would for the first time include a first class cabin to its fleet of 25 Bombardier CRJ700s, and signed a letter of intent to purchase another 22 similarly configured CRJ700s for delivery beginning in mid-2010.

"This is the first time we've gone to a two-class service, and the goal is to be able to provide the premium traveler, who may be connecting or traveling in a local market, the ability to fly a premium product for their entire itinerary," said American Airlines vice president of corporate development Bev Goulet.

An American spokesperson said the design and configuration of the CRJ700s' premium seating remains to be determined, as the carrier and its regional affiliate weigh options. "It's been something we've been looking at off and on for a while," the spokesperson said.

Though American acknowledged softness in premium demand, officials noted an appetite among some passengers for premium service remains. "We think the demand is definitely there," Goulet said.

The plan to introduce regional jet first class service came last month when American said it would bulk up service at its Chicago, Dallas, Miami and New York hubs, reallocate capacity from underperforming markets and discontinue 20 destinations from St. Louis and nine Raleigh/Durham, N.C., departures. Most of the new capacity adjustments will be effective next summer.

The biggest surge will take place at Chicago's O'Hare International Airport with the addition of 50 daily flights, including American Eagle service to Calgary, Allentown, Pa., Charleston, W.Va., Dayton, Ohio, and Lexington, Ky. Many of the first RJs with first class will be deployed there.

Though aircraft manufacturer Bombardier would not disclose the percentage of regional jet deliveries that include premium class seating, a spokesperson said such offerings are growing in popularity. "The push started to gain momentum in 2006," a spokesperson said. "We've spent a lot of time working with airlines on flexible seating configurations, including first class seating. The response has been favorable, particularly after the development of our CRJ NextGen interior—larger bins, brighter lighting and new window design."

Echoing carriers that have launched the service, the Bombardier spokesperson said "passengers are getting the same level of service as in mainline jets while airlines realize revenue gains through higher brand loyalty. This is particularly true among U.S. regional airlines that work with major carriers."

Premium passengers likely will embrace the seating, said Michael Boyd, president of aviation consultancy Boyd Group International.

"They're not all that comfortable to start with, but they are a whole lot more comfortable than the regular seats," Boyd said. "It gives continuity to the product. When a passenger flies from Tokyo to Chicago, then has to go on to Dayton, that first or business class passenger doesn't want to be sitting in the coach cabin. It does make a difference."

Depending on the aircraft, seat density and layout, Boyd said that carriers could include such seating options with little impact on the aircraft's total number of seats.

Delta's Connection partners now offer a dual-class configuration on 156 regional aircraft, which includes pre-merger Northwest Airlink providers, a spokesperson said.

Delta has pushed this year to make domestic offerings more consistent—not just between Northwest and Delta fleets, but also between regional feeders and mainline providers. Those efforts include first class seating options as well as first class meal service and glassware on some Connection flights, the spokesperson said, claiming the effort "harmonizes the onboard product of all nine Delta Connection carriers."

United in 2005 was the first carrier to make a major effort to equip regional service with premium seating, announcing the ExPlus program, which guaranteed that all non-mainline flights from O'Hare that exceeded two-and-a-half hours would use larger regional jets furnished with three classes.

Since then, United and its regional affiliates have grown the service to United's major U.S. hubs, launching three-class service—first, economy and Economy Plus—on 70-seat Embraer 170 and 66-seat CRJ700 aircraft. A spokesperson last month said 130 United Express aircraft now include a first class cabin.

Legacy carriers Continental and US Airways said they do not offer premium cabins in any regional jet feeder operations.