In for the long stretch
Today's battle in the air is at the front end of the aircraft, as airlines upgrade their premium offers to sell more profitable seats, says Andrea Li
The unrelenting growth of Asian economies is pushing passengers towards the front of the plane, with businesses still willing to pay a premium for their staff to travel in comfort, at a time when business travellers in Europe and the United States are cutting budgets and flying more frugally.
'Asian airlines are at the leading edge when it comes to upgrading their premium products. The profitability of these airlines means they are in a better position to improve their hardware with more regularity. Their younger fleets also allow them the opportunity to create new products,' said Brendan Sorbie, a senior analyst at the Centre for Asia Pacific Aviation.
'American and European aircraft are typically two to three generations behind Asian ones, and by the time they have caught up, Asian airlines have moved on to the carriers of tomorrow,' Sorbie said.
Many full service carriers in the region have, in recent years, focused on their premium business: All Nippon Airways upgraded its long-haul business class cabin; Singapore Airlines introduced private cabins for first-class passengers; Cathay Pacific launched new business class seats; and more recently, Hong Kong Airlines launched its all-business class flight to London's Gatwick airport.
'The intercontinental routes are where all the international airlines compete, and where you see a convergence, and need to be competitive in the front-end market,' said Andrew Herdman, director general of the Association of Asia Pacific Airlines.
The arrival of low-cost Asian carriers such as Air Asia and Jet Star has further pushed full service carriers down the premium route, pressuring them to make a decision on whether to focus on the front or back end of the plane.