Luxury air travel a thing of the past ?

[Pieter C. 5]

Luxury Air Travel A Thing Of The Past?

 

June 5, 2010

 

The economic downturn has clipped the wings of luxury air travel. Hi-end boutique airlines have collapsed, businesses are bargain hunting online and most people seated in the front of the plane have paid only for the back, experts say.

 

"Luxury air travel has essentially been grounded," said Peter Yesawich, chief executive of the travel marketing company Ypartnership, "One of the first prerequisites to go in a tough economy."

 

Yesawich, whose company tracks travel trends, said that with the exception of long haul, these days even most folks in first class are flying on upgrades.

 

"It's said that real profit in any flight is front of plane. The rest covers the overhead," he explained. "But there's been a conscious effort by corporations and individuals to suppress that travel."

 

Airlines are also battling the price transparency that the internet has revealed.

 

"A couple of clicks on kayak.com, for example, shops airfares even for business class," Yesawich explained.

 

He said big carriers, such as Delta and British Airways, are trying to lure business travellers back to first class with amenities such as onboard showers, flat seats for sleeping and Internet access.

 

But the high-end boutique airlines that sprang up in the boom before the bust have mostly gone the way of the Dodo bird. Now most boutique airlines are low cost and no-frills.

 

"Eos is no longer in business and L'Avion was gobbled up by British Airways," said Steve Loucks, vice president at Travel Leaders, of two boutiques that ferried passengers in high style during high times.

 

So how do the rich get around these days? It depends on what you call rich.

 

"The super rich fly anyway they want," said Mike Weingart of Travel Leaders in Houston, Texas.

 

In Glendale, California, his colleague Vicky Voll agrees: "Business people, retired executives, film stars, some own private planes. Amazingly for long haul flights, they choose scheduled airlines in first or even business class."

 

If there are eight to 10 people travelling together they usually charter a small Gulfstream, she added.

 

According to Jami Counter, senior director of TripAdvisor, today's luxury traveller inclines toward private jets, or at least a piece of one.

 

"What's been in vogue is fractional jet ownership," which Counter likened to a time share. "It's flexible. You can tap into it, so it's a nice alternative to owning a jet."

 

For scheduled flights up where the air is rarefied, he cites the double-decker, wide-bodied Airbus A380, which has been flying commercially since 2007.

 

"Emirates out of Dubai, with 100 destinations around the world, has 50 Airbus A380s on order," he said, adding that they boast showers in first class, spas and private suites.

 

Counter says the luxury boutiques are like canaries in the economic coal mine.

 

"In 2000 Legend Airlines announced an incredibly high-end, 59-seat business class service out of Dallas. Then came the dot.com downturn and Legend lasted less than a year," he said.

 

"Every time airlines go in for this high-end luxury service, it's a sign things are getting overheated."

 

(Reuters)

[Josh T 0]

Well, times are changing. Customers expect more for what they're paying, given the economic crunch, so business class is fast becoming the new first class, premium economy will be the new business and economy will forever be economy. Only on mainline routes on big legacy carriers will there be a true first class, and only on planes such as the A380 or B747. I'm sure there's still a market for First Class but airlines need to promote it as a class beyond first now to entice passengers who can afford it. Hence the "showers" on Emirates and "Suites" on Singapore Airlines. It'll be very interesting to see what MH comes up with for the First Class.

[Cheng Long 0]

Malaysia is mainly a leisure market, not much top end travel.. So I think MH's new First class will be a decent product but don't expect anything extraordinary.

[Timothy 1]

wish i could pay economy and fly 1st

[Josh T 0]

wish i could pay economy and fly 1st

I think many people wish that! I'm waiting for MH to get their A380 before I save up enough points to try their first class on those planes!