PRIVATE WEALTH - August/September 2007 Issue
Flying High - By
Douglas D. Gollan - 08/1/2007
Douglas D. Gollan
Douglas D. Gollan is a contributing editor of Private Wealth magazine.
View all articles by Douglas D. Gollan
Airlines are stepping up to fill the gap between the serenity of private jet travel and the miseries of coach class.

Bridging
the gap between private jets and claustrophobic passenger aircraft,
many major airlines have been stepping up with better services and
seating targeted specifically to the high-end international traveler.
One
of the most important international routes for those involved in
finance is New York to London, and while walk-up first-class fares can
exceed $10,000 roundtrip, the airlines that compete on this route have
been investing in better products.
British Airways (www.ba.com)
is in the middle of rolling out its next-generation Club World business
class. Like the previous variety, these seats recline into a flat and
horizontal position so passengers can sleep in a bed-like environment.
Other features include audiovisual on demand that enables travelers to
stop, rewind and fast forward movies as they wish, larger tray tables
and larger personal video monitors. The airline also offer travelers
from major gateways along the East Coast and Chicago preflight dining
so they can maximize their sleep on board. At the London end is an
arrivals lounge with showers, including pressing for clothes and full
breakfast if you need to refresh before heading directly for a meeting.
The
British carrier also is planning to unveil a new first-class concept
later this year, and next spring will move into a new home, Terminal 5,
at its London Heathrow hub. In the meantime it is focused on providing
high-frequency flights so business travelers can change their schedule
as needed. Currently there are ten daily roundtrips between two New
York-area airports, JFK and Newark Liberty, and Heathrow. Many other
cities have two and three flights a day, and BA serves more North
American cities than any other carrier.
Of course, travel to the U.K. has many strong competitors who want the high-yield business traveler. Virgin Atlantic Airways (www.virginatlantic.com)
is best know for its billionaire chairman, Sir Richard Branson, who can
often be found aboard its flights. Lesser known is that the airline is
now 49% owned by Singapore Airlines.
While not offering a
first-class cabin, Virgin pioneered a value-added business class
labeled as Upper Class. Seats in this cabin, like British Airways,
recline into a flat and horizontal position to create a bed. On board,
Virgin flights are known to be lively, with a masseuse and bar
encouraging passengers to have a drink and socialize.
On Virgin
the seats are positioned in a herringbone fashion, meaning every seat
is an aisle or a window so you never have somebody climbing over you.
On
the ground, Virgin has a unique lounge concept—Virgin Clubhouse—serving
full hot meals and offering spa treatments and media rooms. Its
flagship clubhouse at Heathrow includes a barbershop.
One of the new entrants making a splash in the market is EOS Airlines (www.eosairlines.com).
The carrier was started by former BA executive David Spurlock and
recently appointed Jack Williams, a former senior executive with
American Airlines, as its CEO.
Using a 757 that would normally
carry nearly 200 passengers, the airline installed 48 suites (similar
to what is found in first class on many international airlines). It
currently flies from
JFK to Stansted, a London area airport known
more for its regional flights to Europe, but with a direct train
connection into the city.
The airline tries to take the hassles
out of travel by employing curbside greeters who check passengers in
and will take them through priority lines at security if they are
running late.
The airline has up to three flights a day and plans to start a JFK to Paris route early in 2008.
EOS
claims success by offering a first-class style product but charging
business class fares, from just under $7,000 on a walkup basis to
special fares for as low as $3,000.
Two other airlines trying to get a piece of the market are Silverjet (www.silverjet.com) and MaxJet (www.maxjet.com),
which each fly 767s with approximately 100 seats, as opposed to the
normal 200, in an all-business-class environment. Unlike EOS, their
seating is equivalent to older style business-class seating—seats that
recline at an angled position. Both of these airlines pitch fares that
range as low as $1,500 round-trip.
Moving to continental Europe, Lufthansa (www.lufthansa.com)
has had a major focus on the premium market. Over the past couple of
years the airline identified hassles on the ground as one of the
biggest complaints of highpaying customers. To circumvent its crowded
terminals in Frankfurt and Munich, the German airline created dedicated
first-class terminals that are separate from its main facilities. Upon
landing in either city, first-class passengers are deplaned into a
waiting Porsche or BMW and whisked to the first-class terminal, where
any immigration and customs formalities are handled. If they happen to
be connecting, they are then driven to the departure area of the next
flight segment when it is ready for boarding.
Each terminal has
a full restaurant, concierge services, showers and other amenities.
Separately, Lufthansa and NetJets collaboratively launched Lufthansa
Private Jet, allowing its passengers from North America to connect onto
a private jet at an extra charge for their onward flight.
Air France (www.airfrance.com)
also has been making improvements, rolling out new first- and
business-class seats. Its first-class seats are in pods with large side
tables and plenty of workspace. Its new business-class seats are now
into their third version. While the seats went into a flat position,
the tilt meant passengers complained that they felt they were sliding
down. The latest rendition, currently being installed, brings the seat
to a nearly flat 175-degree recline.
At its Paris Charles de
Gaulle hub, the French airline is following Lufthansa’s playbook by
providing planeside boarding and disembarkation to first-class
passengers by private car transfer from and to the firstclass lounge.
Looking farther east, Emirates (www.emirates.com),
the Dubai-based airline, in December starts a nonstop flight from
Houston to its home base. It already offers three flights a day from
New York JFK, while Qatar Airways, which promotes its high level of
in-flight service, started flights to Newark and Washington, D.C.’s
Dulles Airport this June. The Dulles flight is nonstop to Doha while
the New York flight routes through Geneva, providing a new alternative
to travelers who have business along Lake Leman.
Travel to Asia
always has been an opportunity to fly with what are considered two of
the world’s most service-oriented airlines, Cathay Pacific Airways of
Hong Kong and Singapore Airlines. With cupboards full of service
awards, both airlines aim to please and both have invested heavily in
new seating for their first- and business-class cabins.
Cathay (www.cathaypacific.com)
is rolling out a new suite concept in first class that provides
considerable privacy, and even a private coat closet. In business class
the airline is installing fully flat seats similar to those being used
by Virgin.
Singapore Airlines (www.singaporeairlines.com)
meanwhile has focused on creating extra-wide seats in both first and
business cabins, with its business seats being the widest any airline
is offering. Both the first and business seats convert into flat beds.
Korean Air (www.koreanair.com)
also is making a move for a larger share of the premium market to Asia
and particularly China. It currently serves more than 20 cities in
China with a connection at its ultramodern hub at Inchon from 12 North
American gateways. Its new first-class seating is state-of-the-art,
flat-bed pods that include high-tech audio-visual on demand.
Another
concept that is changing travel is all-business-class or premium long
haul service from the major airlines. Lufthansa offers this service as
scheduled flights using Boeing business jets and Airbus corporate jets
with less than 50 business seats. The flights are used to link cities
that don’t have the traffic to support nonstop flights with larger
planes. While these flights don’t offer a first-class cabin, they have
become extremely popular as the small amount of people traveling mean
easy boarding and quick luggage retrieval.
KLM, the Dutch
carrier, now uses this all-business/premium concept to offer a second
flight from Houston to Amsterdam, while Swiss operates such a flight
between Munich and Zurich. More of this new concept will be big news
for business travelers in 2008. With a new air travel agreement between
the European Union and the United States, both British Airways and
Virgin Atlantic have announced their intention to begin next year
all-premium flights between the U.S. and cities such as Zurich, Milan
and Paris using these small aircraft.

