TWA, US Airways Enhance Front Cabin Products

<B> TWA, US Airways Enhance Front Cabin Products</B>

By Jay Campbell

The middle of the airline pack is shaking things up as TWA and US Airways, the nation's seventh and fifth largest carriers in terms of revenues, recently announced major enhancements to their premium class products.

The moves follow similar upgrades to first class products throughout the airline industry over the last few years, including a December announcement by Lufthansa German Airlines. But executives at TWA and US Airways say their new products have particular significance in that they will transform the two airlines into carriers of choice for business passengers.

TWA's new domestic first class product, called TransWorld First, offers 60 percent more first class seats than it previously had. Eighty percent of the carrier's fleet has been retrofitted, with the B727s expected to be ready in March.

The seats have a 36-inch seat pitch--the number used by the airlines as an indicator of legroom. Domestically, other carriers tend to have slightly lengthier pitches, but often fewer seats. In American's domestic first class system, for example, there is an average of three more inches of legroom. But in AA's MD-80s, there are 14 first class seats, where TWA now has 20. TWA will have 20 first class seats in its B727s, where United offers 12 with a seat pitch of 38 inches. Delta's long-range 727s have 12 first class seats while short-range 727s have 8; the seat pitch is 37 inches.

Trans World also is offering special checkin privileges, priority baggage handling, club access on the day of travel and--for passengers who book a full coach ticket--a first class upgrade and 50 percent frequent flyer mile bonus.

TWA's executive vice president of marketing Don Casey told reporters at a Jan. 12 press conference that industrywide, only 2 to 3 percent of passengers actually pay for first class, so TWA isn't missing much in making it easier for coach passengers to upgrade. He added that in installing the new seats, the airline did not have to give up any seats in coach because many of the aircraft still had extra room in that cabin, left over from the carrier's disbanded "Comfort Class," which offered extra legroom in coach.

These and other moves (<i>BTN</i>, Aug. 25) are designed to help TWA increase its share of business passengers, which it already had begun to do. Casey said the airline's yield increased by 10 percent in 1997 over '96, and the carrier is looking for further increases next year. He estimated that 60 percent of TWA's revenue comes from business travelers, up four percentage points from the end of 1996.

Asked whether these changes will affect TWA's negotiating position--seen in the corporate travel industry as somewhat "easy" since TWA has for years been struggling for more share of the corporate market--Casey said, "We're getting tougher." The airline signed 1,500 corporate contracts last fall, he said.

TWA also is planning a new brand for its short-haul flights out of St. Louis and a revamped frequent traveler program, to be unveiled in early spring. The carrier recently introduced new first class food and a redesigned airport club in its St. Louis hub, featuring 15 private work stations that include dataports, copy machines and paper shredders.

While US Airways is already an airline used by many business travelers--largely a result of its concentration in the big business capitals of the Northeast--it is hoping to bring that preference to its expanding transatlantic operation with the introduction of Envoy Class, a new business class with sleeper-type seats "that recline an industry-leading 155 degrees, with 55 inches of legroom between rows."

The new product, similar to Continental's BusinessFirst and TWA's TransWorld One in its "first class at a business class price" approach, was made available in December on flights from Philadelphia to Frankfurt, Madrid, Munich, Paris and Rome, and from Pittsburgh to Frankfurt. The service offers first class dining, an optional express meal service, snacking station, premium champagne and wines and in-arm video screens. Also, each seat is equipped with GTE's Airfone service, which includes a modem connection.

"Envoy class is a perfect example of the evolution over the last year or so as part of a broader plan to become the airline of choice," said Martin White, US Airways vice president of marketing programs and services. "We've been very detail-oriented and gone out of our way to make sure we're doing things better than other airlines. Without question, the USAir of old had not delivered that."

The carrier now has more destinations in Europe than it did two years ago, with the addition of Madrid, Munich and Rome, White noted. It also is awaiting clearance to begin Philadelphia-Amsterdam flights and is planning flights to London Gatwick.

As part of that broader effort, US Airways also has redesigned a slew of its airport clubs, including locations in Boston, Buffalo, Charlotte, Hartford, Philadelphia and Washington National. Some clubs, White said, will have a special focus on their business centers.

In Philadelphia, for example, the carrier is offering more than the usual copiers and fax machines, including secretarial service and catering in eight conference rooms. Meetings services require a reservation and each room can accommodate up to 15 people. A new club in Charlotte will have comparable services when it opens in May.

One of US Airways' major competitors on the Frankfurt and Munich routes is Lufthansa, which last month announced an investment of over $140 million in premium class services on 47 long-range aircraft. Judging by the planned first class sleeper compartments, though, Lufthansa may be responding more directly to Air France and BA's first class products.

The new Lufthansa first class cabin, similar to that of its British and French rivals, will offer seats that convert into a bed with a partition for privacy or into a workplace, complete with laptop power hookups. The seat pitch will increase from 62.8 to 93.6 inches.

In business class, Lufthansa will install seats that recline 125 degrees with a seat pitch of 49.2 inches, up from 40.8.

The carrier will begin installation in both cabins this month and expects to complete the upgrade "mostly by next summer." A new variety of food and entertainment options, arrivals lounges with showers and new airport lounges also will accompany the changes.