ARTICLES:
Does First Class Make Sense for Airlines?
Issue: 7:2 (The twenty sixth issue)
This topic reflects the behavioral characteristics and the measurement of first
class air travel worldwide. Airlines in the East are pushing the boundaries and
investing heavily on their first class cabins and potentially competes for their
premium passenger. On the other hand, first class market in the western part of
the world has been disappearing for decades and rather replaced with improved
business class cabins. The worldwide shock of most recent economic crisis had
a downward impact on the premium air travel and the post economic impacts
were followed by some carriers cutting their first class capacity. The purpose
of this research is to highlight whether first class make sense for the airlines to
retain? This study is carried out with the research that some airlines have
specifically targeted their routes that can fill expensive first class seats, and
these were reflected by the strong presence of global business centers whereas
others were diminishing due to less lucrative demand. This research will also
show the complexity of airline hard product around the world and how they
encounter to retain their premium passenger.