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Cathay has been for a long time uncertain to introduce to a Premium Economy Class on its aircraft. It was already evocated in 2010 by former Cathay Pacific CEO Anthony Tyler, who spoke in August of that year of a “Premium Economy on due times”. But continuous rising fuel prices and recession in some of Cathay Pacific major long-haul markets such as the UK, Continental Europe and North America precipitated the decision to introduce the new product in 2012. “We were never against a premium economy class. We simply recognized that time has now come, as travellers in many markets are getting more price-sensitive but who are still happy to pay the necessary extra for a better experience on board,” explained recently in Berlin John Slosar, Cathay Pacific Chief Executive since the 2011.
With most of its competitors such as Eva Air, JAL, All Nippon Airways, Qantas, Virgin, Air New Zealand, Air France or British Airways already equipped with an Economy Premium product for a couple of years, Cathay Pacific had finally no choice than following the main stream. “The product is a real upgrade over economy seats and is very more like a regional business class seat with great recline and plenty of leg space,” added Mr. Slosar.
The new Premium Economy product features a more spacious cabin than the existing Economy Class with between 26 and 34 seats. The seat pitch is set at 38 inches (96.5 cm) compared to 32 inches (81 cm) in the traditional Economy Class – and the seat itself is wider with a larger recline (2 inches/5 cm more than in Economy class). It has a large meal table, cocktail table, footrest, a 10.6-inch personal television, an in-seat power outlet, a multi-port connector for personal devices, and extra personal stowage space.
Enhanced service includes dedicated check-on counters and priority boarding on the ground, a bigger baggage allowance, better meals, an amenity kit and larger pillows. “Success seems to be there”, told Mr. Slosar: “we already sold on the first day 5,000 tickets for the new product”.
Further reasons highlighted by Cathay CEO point to a higher segmentation in economy class as well as tougher competition in pricing in the back of aircraft’s cabins. “We can of course increase our revenue per seat in the economy class segment with this Premium Product,” stressed John Slosar. Is there a risk to see Business travellers deserting the business class for the Premium Economy? “I do not believe that it will happen. Studies point out that users of a better Economy Class product tend to move upfront than the contrary”.
The retrofitting of aircraft just started and will be available on the entire long-haul fleet “as the product will be available across our global network,” said John Slosar.
The first two retrofitted aircraft with the premium economy class were delivered in March and started already to fly Cathay network. A total of 50 to 60 aircraft with Premium Economy seats will be deployed this year on routes to Australia, Europe, the Middle East, North America and long haul Asian destinations. Initially, Premium Economy seats are available from Hong Kong to Sydney, Toronto, Vancouver and New York and before the end of the year to London, Los Angeles and San Francisco. By the end of 2013, the airline management hopes that all 87 aircraft of Cathay fleet will have been equipped. The airline upgrades in parallel its long haul economy class seat.
Cathay CEO shared also its satisfaction about the approval for the construction of a third runway at Hong Kong Chek Lap Kok International Airport. The runway is in the procedure planning including an impact study on the environment as it will be built on reclaimed land from the sea. “Such a decision ensures the long-term competitiveness of Hong Kong as an important international financial centre as well as a tourism destination “, said Mr. Slosar. Air capacity at the airport will then be raised to 100 air movements compared to 56/58 today and up to 68 movements by 2015 thanks to technology improvement.
Luc Citrinot a French national is a freelance journalist and consultant in tourism and air transport with over 20 years experience. Based in Paris and Bangkok, he works for various travel and air transport trade publications in Europe and Asia.
