Now austerity’s out, and competition is pushing the world’s biggest carriers to introduce an ever-spiffier range of services. These days the coveted business-class traveler can choose between at least 10 different airlines on the busy London-to-New York route. That’s one reason the big British carriers are overhauling their premium services. Giant British Airways is spending £600 million on a wide-ranging makeover. Upstart Virgin Atlantic is investing £37 million. It was Virgin, of course, that kicked off the rivalry with luxuries such as in-flight massages almost since its launch. BA struck back with first-class sleeper seats in 1996, triggering rounds of catch-up. Next, Virgin will offer a double bed with, natch, “additional privacy.”
But the fun could soon fade. Offer top-paying passengers aromatherapy packs, as Air New Zealand does, or just more legroom, and your rivals will surely follow suit. Says Tim Coombs of Aviation Economics: “In the past you could steal a march for a couple of years, but the product life cycle is getting a lot shorter.”
And trickier. Business fliers rule, but the bargain crowd still counts. Last year BA boss Bob Ayling moved to cut capacity by 12 percent and concentrate on the top end of the market. Bad idea. “We care about all our customers, including the 85 percent of our passengers who travel in the economy cabin,” BA’s new CEO Rod Eddington told staff last week, just before he announced a £244 million operating loss. The answer may be adding new classes to suit all pockets–something the giant A3XX could make easier.
