Singapore Airlines Ltd is facing no problem selling business-class tickets on its ultra-long nonstop flights to the US, but is having to price premium economy seats very attractively, a senior executive said yesterday.
The carrier last month resumed after five years the world’s longest commercial flight, a nearly 19-hour nonstop journey from Singapore to New York.
The airline ordered seven new ultra-long range twin-engine Airbus SE A350-900ULRs fitted with just 67 business class and 94 premium economy seats for those flights and for nonstop services to Los Angeles and San Francisco.
These flights have no economy class seats.
It represents a major expansion in the US market for Singapore Airlines and a test of whether the carrier can charge the 20 percent price premium that travel industry data has shown is typical for ultra-long nonstop services due to their popularity with time-sensitive business travelers.
Singapore Airlines executive vice president Mak Swee Wah (麥瑞華) said there was existing demand for business class, which he expected would continue to pick up.
However, for premium economy, some markets were not “entirely familiar” with the product, which offers more leg room and other amenities than economy class, Mak added.
“I think we need to continue to stimulate and encourage the market to consider this product, initially with very attractive pricing, but eventually I think people will see that even at prices which we offer it is a good product to purchase, because it is a very long flight,” he said at an analyst and media briefing.
His comments came after Singapore Airlines on Tuesday reported an 81 percent plunge in second-quarter net profit, hurt by higher fuel prices, lower airfares and noncash losses at part-owned Virgin Australia Holdings Ltd.
Yields, a proxy for ticket prices, fell 2.2 percent in the second quarter compared with a year earlier, failing to help offset the impact of a 24 percent rise in fuel prices.
Singapore Airlines is offering premium economy fares as low as S$1,698 (US$1,229) from Singapore to New York for weekday travel over part of the peak Christmas travel period, its Web site showed.
That is in line with economy class fares from premium rivals like Hong Kong’s Cathay Pacific Airways Ltd (國泰航空) and Dubai, United Arab Emirates-based Emirates Airline that require a stop and longer travel time, a search on Expedia.com showed.
Mak declined to comment on whether Singapore Airlines would consider changing the configuration of the airplane to include more business-class seats.
When it previously flew to New York and Los Angeles nonstop on four-engined A340-500 jets that used more fuel, it had initially offered both “executive economy” and business class, but later switched to an all-business class configuration. Those flights were abandoned in 2013, when high fuel prices made them uneconomical.
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