AC putting premium economy seats into their fleet

Discussion in 'Air Canada | Aeroplan' started by guinnessxyz, Nov 30, 2012.  |  Print Topic

  1. http://business.financialpost.com/2...omy-seating-on-some-planes-next-year-sources/

    Air Canada plans to introduce new premium economy seating in the cabins of its new Boeing 777s next year and its 787 Dreamliners when they are delivered in 2014, sources familiar with the plan say.
    The premium economy seats will provide an alternative for passengers who want more legroom than is offered in economy seating at a price that is lower than business class.
    The country’s largest carrier had originally intended to introduce the new cabin configuration — which will include a business class, premium economy section, and basic economy seats — on its new Dreamliners. But after a series of delays, the carrier opted to roll them out on two new higher-density 777s it will take delivery of next summer.

    The decision comes at a time when Air Canada’s domestic rival, WestJet Airlines Ltd., is also set to unveil its own premium economy seats early next year. Those will be introduced alongside a new three-tiered fare structure that will help drive its own revenue and hopefully attract the coveted business traveller.

    After crunching the numbers, Mr.Spracklin said he believes Air Canada will be able to do something with the new LCC it couldn’t with its previous discount carriers, Tango and Zip: turn a profit. He said he expects the LCC might be able return a modest profit of more than $952,000 in its first year nearly $12-million by 2018 as its fleet grows.
    While the initial aim is to fly to destinations in Europe and the Caribbean, Mr. Spracklin said he also expected Air Canada to expand its LCC’s operations into Asia as well.
    This was only made possible by the changes contained in its recently imposed labour agreement with its pilots, which allows for greater flexibly in its fleet, he noted.
    But more importantly, it would allow Air Canada to offload its less efficient aircraft to the lower cost airline and to continue to grow into new markets, he added.
    “While challenges remain including further pension reforms, aircraft financing, and continued deleveraging, we believe the strategy and plan in place by Air Canada management is prudent and likely to turn Air Canada [into] one of the strongest international carriers globally,” he said.
     
    TRAVELSIG, milchap and sobore like this.
  2. milchap
    Original Member

    milchap Gold Member

    Messages:
    27,629
    Likes Received:
    148,027
    Status Points:
    20,020
    A minor detail.......rolling out the premium economy seat on only two 777 at first will create a problem if one books the premium seat and there is an equipment switch to a standard 777 figuration !
     
    TRAVELSIG likes this.
  3. sobore
    Original Member

    sobore Gold Member

    Messages:
    12,421
    Likes Received:
    33,847
    Status Points:
    16,520
    Perfect! ;)
     
    TRAVELSIG and milchap like this.
  4. TRAVELSIG
    Original Member

    TRAVELSIG Gold Member

    Messages:
    3,942
    Likes Received:
    5,509
    Status Points:
    4,145
    Look forward to seeing this. TK has a good premium economy product for example and LO is rolling out a premium economy product this month with their new 787. Perhaps this will become a Star Alliance standard?
     
    milchap likes this.
  5. georockc

    georockc Silver Member

    Messages:
    198
    Likes Received:
    177
    Status Points:
    395
    I haven't found any problems with the economy leg room on the 777 (much better than Qantas for a Transpacific). Hopefully they're not going to just cram economy closer together to make Premium look nicer.
     
  6. canucklehead
    Original Member

    canucklehead Gold Member

    Messages:
    5,895
    Likes Received:
    22,059
    Status Points:
    11,070
    Sounds like just better seating but not service. Wonder if it will get a new tango-like designation - I offer paso doble!

    Wonder if Aeroplan elites will be given the PremEcon seats like UA MP elites are.
     
    Golden Toque and YULtide like this.
  7. I think premium economy is the "consolation" prize for elites who will find it harder and harder to get upgrades. On Asian routes in particular some days there are upwards of 15 SE's with T+ tickets on the stnby list. As well latitude sells well and in certain seasons full and discounted J seats sell very well. And, as they focus more and more on FRA and LHR as European hubs, upgrades will be harder to come by on those routes also. When they start IST their economic studies indicate that will be a high yield route as well, in other words they will sell a lot of latitude fares and higher.

    The new LCC will go to the lower yield places like FCO, MAD, DUB etc.initially.
     
    canucklehead likes this.
  8. YULtide

    YULtide Gold Member

    Messages:
    2,745
    Likes Received:
    10,554
    Status Points:
    10,520
    T++?
     
    guinnessxyz and canucklehead like this.
  9. canucklehead
    Original Member

    canucklehead Gold Member

    Messages:
    5,895
    Likes Received:
    22,059
    Status Points:
    11,070
    Tango doble! :)
     
    YULtide and guinnessxyz like this.
  10. Canadi>n
    Original Member

    Canadi>n Gold Member

    Messages:
    1,956
    Likes Received:
    1,617
    Status Points:
    1,120
    According to reports in Turkish newspapers and report on FT, TK is going to phase our its Comfort Class on existing 777s and won't install this cabin on its new deliveries of 777s. While it was a very comfortable service, it was not selling well except at the airport where the supplement was $200 or so per segment. That was still much lower than the actual purchase price.
     
  11. skyvan

    skyvan Gold Member

    Messages:
    2,044
    Likes Received:
    3,688
    Status Points:
    2,045
    That's depressing news, though I never flew it, it seemed like a great option. I see Premium Economy as a great option for those on a budget, I flew it back when TG operated A345 LAX-BKK...much better than regular economy and only slightly more.
     
  12. On my most recent visit to China I surveyed several Chinese business men who travel regularly to Canada about their flight preferences. They said, unanimously, they like AC but prefer CX because it has F seating. I have always had the feeling that AC needs F seating on their premium routes but they seem to feel it won't provide enough yield based on the fact Canadians don't like to even pay for J. .
     
  13. TRAVELSIG
    Original Member

    TRAVELSIG Gold Member

    Messages:
    3,942
    Likes Received:
    5,509
    Status Points:
    4,145
    Years ago both Canadian and Air Canada had F products.

    Certainly there is a (niche) market from Canada to both Europe and Asia which pays for F- and which is serviced by BA, LH, CX, etc etc. I don't know that the business plan for a First class offering would come up on the priority list of Air Canada- perhaps there is an argument to be made to/from YVR and YYZ but competing with CX etc would be very difficult and may not even break even.
     
  14. tomh009
    Original Member

    tomh009 Gold Member

    Messages:
    2,258
    Likes Received:
    1,819
    Status Points:
    1,220
    If you really end up filling F with upgrades from J rather than sold F fares, you really haven't gained much. And I suspect that would be a big risk for AC -- there simply aren't very many people (or companies) who will pay for international F to/from Canada.

    And multiple colleagues have told me (unprompted) that AC J is preferable to NH or JL J ... the "executive first" isn't a complete misnomer.
     
  15. No question about that. AC's J product stands up very well against most carriers thye compete against. However, as the economy improves and more and more wealthy travellers from Asia travel to Canada they are booking F with CX or now China Southern which is expanding its reach into Canada from Quangzhou in Southern China.
    CX is also cheaper than AC on most fare buckets.
     
  16. TRAVELSIG
    Original Member

    TRAVELSIG Gold Member

    Messages:
    3,942
    Likes Received:
    5,509
    Status Points:
    4,145
    With China Southern (CZ) I think you mean Guangzhou. Trust me- today anyway the AC J product is on par with the CZ F product. Certainly CX has a completely different product.
     

Share This Page