American: Distinct 'Premium Economy' fare class coming in February
American is beginning to sell Premium Economy fares informally on the airline’s Boeing 787-9 "Dreamliner" aircraft. With that, American becomes the first U.S. airline to officially offer a true international-style premium economy cabin with recliner seats and amenities that are significantly nicer than standard coach.
But to expand the offering beyond its 787s -- which are now being delivered with the new Premium Economy seats already installed -- American must modify other planes that don't currently have the seats. The airline must also overcome some technical challenges before it can begin selling the seats as a distinctly different category cabin across a wider variety of planes in its international fleet.
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“For international Premium Economy, the great news is that we’re seeing it come out on our 787-9 deliveries,” President Robert Isom told stock analysts. “Right now you can buy into those seats, which is good news. As we get to the point of offering it consistently next year, we’ll be able to start selling a Premium Economy cabin.”
The Premium Economy-outfitted 787-9s have already begun flying between Dallas/Fort Worth and Los Angeles, both hubs for American. But while American breaks in the new aircraft on that domestic run, it says passengers will not receive the full Premium Economy experience - just the seat. That will change next month when American begins shifting the planes to international routes.
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Now flying on American: Real international-style premium economy seats
From Dallas/Fort Worth, flights that feature the seats in rows 9 to 11 include Sao Paulo starting Nov. 3, Madrid on Nov. 4, Paris on Jan. 9 and Seoul on Feb. 16, according to the company’s website.
Don Casey, senior vice president of revenue management, said American is developing information technology with Sabre to sell Premium Economy as a fourth cabin category early in 2017.
“We’ll start selling the fourth cabin in mid-February for flights beginning in April,” Casey said.
Currently, American's Premium Economy seats show up in the same category as its "Main Cabin Extra" seats. Those are typically aisle or exit-row seats for which American charges extra to non-elite fliers. Many elite customers are able to reserve the seats at no extra cost. American appears to be sticking with that approach as its Premium Economy begins a slow debut on long-haul international routes.
Boeing 787 Dreamliner is now flying for American Airlines
November flights between Dallas/Fort Worth and Sao Paulo, for example, show the seats listed in the same category as American's "Main Cabin Extra" -- standard coach seats where the perk is just a few extra inches of legroom. The recliner Premium Economy seats were able to be selected by elite-level fliers at no charge; Non-elite fliers could select them, but only for a fee that ranged from $163 to $190 each way on American's DFW-Sao Paulo flights. That pricing is in line with what American charges for its "Main Cabin Extra" seats.
American has not revealed plans for its long-term pricing strategy for international Premium Economy, but other airlines that offer a comparable product -- carriers such as Singapore Airlines, British Airways, Lufthansa and Air France -- typically set fares somewhere between coach and business prices. If American follows that path once it designates a separate Premium Economy fare class, it's likely the cost those seats would work out to be more than just $190 each way.
Before it can institute a separate Premium Economy fare class, however, American must roll out the product across more of its fleet.
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Isom said in addition to 787-9 aircraft, modifications would be made to provide Premium Economy on the carrier's Airbus A330-200 and Boeing 777-200, 777-300 and other 787 models.
The reconfigurations, which will cost the airline about one row of seats on each plane, will take 18 to 24 months, Isom said.
“We’re not going to be ready along all those fleets until June 2018,” Isom said.
CEO Doug Parker declined to detail how much revenue the product would generate for the company, but said it would be hundreds of millions of dollars per year.
“We’re excited about it,” Parker said. “It’s a meaningful impact to our customers and our revenue.”
Contributing: Ben Mutzabaugh
IN PICTURES: American Airlines shows off its Boeing 787-8 Dreamliner
