Posted by Seth on March 3, 2010 under frequent flyer, News | 
Continental’s announcement this morning that they will begin charging non-elite members for the seats with the most legroom has raised a number of questions. The company released an internal memo to all employees explaining some of the details behind the program. Here’s what it had to say:
Questions and Answers about CO’s Premium Seat Program
Why not just continue giving the better seats away for free? It has worked for years.
CO is focused on making money, and we aren’t going to be able to do that by doing the same things we have done in the past. There is additional revenue from new products, like extra legroom seats that are already in our coach cabin, that we have not effectively unlocked in the past. It makes no sense to give away the best seats in coach to non-Elites for free. So we are changing that, and will bring in new sources of revenue we’ve not tapped in the past.
Will our customers be willing to pay for extra legroom on the aircraft?
Yes. Certain customers strongly value having more space on the aircraft. On the other hand, some customers don’t value extra space. Customers will pay for the things that they value, and extra legroom is one of those things. Many other airlines like United, Virgin America, Singapore and British Airways have successful programs selling extra legroom.
Which seats on our aircraft are classified as premium seats with extra legroom?
Initially this program is focused on selling seat assignments for exit row seats that have extra legroom. We expect to start selling bulkhead seat assignments in the future. The exact seats that will be available for sale will vary by aircraft type. For example, not every exit row seat has extra legroom, and those seats would not be included in the program.
How much will the premium seats with extra legroom cost?
Pricing will vary based on numerous market characteristics, including length of the flight. We’ll experiment with various prices, and that will give us solid data upon which to base future pricing decisions. For example, extra legroom seats between IAH and EWR might be offered at $59. Certain days like holidays or weekends might get discounted pricing. All check-in applications like continental.com and kiosks will have the prices of seats at check-in.
If the only seats left on the aircraft are premium seats, will we force passengers to pay extra for them?
This is a pretty unlikely scenario, but if it happens, we won’t require a passenger to pay extra to obtain a seat assignment.
Will pass riders have to pay in order to obtain a seat with extra legroom?
No. Pass riders will be given these seats for free when they are available. Charging non-Elite revenue passengers for these seats should increase their availability to pass riders, as there will be customers who don’t value the extra legroom enough to pay for it.
None of the answers are particularly surprising – except for where they expect folks to pay $59 for an exit row from Houston to Newark – but the tone of the email definitely is. Continental’s inclusion of British Airways and Singapore Air in the list of companies that sell extra legroom is also quite interesting considering that those airlines actually have a wholly separate product that they are selling, not just a couple seats on the plane, and their Premium Economy product comes with other benefits as well. And while the bulkhead seats generally offer extra legroom there are also compliance issues with selling those seats. Continental will need to be very careful about that while ensuring that they can meet their obligations for passengers with limited mobility.
Also of note is the comment about bringing in “new sources of revenue” that have not been previously tapped. This leaves the door wide open for the airline to start charging for even more individual benefits than they do today. From the complimentary “meals at mealtime” to carry-on baggage, it is hard to take anything off the table at this point.
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Posted by Seth on December 10, 2009 under points |
Ending a relationship that has spanned over 20 years, Delta and Singapore Air have announced an end to their frequent flyer partnership. As discussed by Lucky and Gary the partnership will be coming to an end on May 15, 2010. The rewards on Singapore Air used to be a great value for folks collecting SkyMiles. Now that the premium seats are much harder to find (though I’ve got a couple for Christmas!!) the value really isn’t there so much. Plus, with Delta growing their global footprint directly and also with their membership in SkyTeam and Singapore Air’s membership in Star Alliance it doesn’t really make sense for the partnership to continue from any perspective.
Get working on those redemptions if you’re still interested. The clock is ticking.
Posted by Seth on February 8, 2009 under Trip Reports |
Well, the weekend of partying with the folks at Continental has finally ended. I’m on a plane now on my last flight, from Austin to Newark, and the shift from indulgence and celebration to work. Yeah, that’s a buzz kill. But the good news is that the high I’m on is pretty ridiculous. The weekend was absolutely amazing from start to finish.
As I mentioned on Saturday, we got a tour of Texas on one of Continental’s 757-200 planes, with Vice Presidents and Managers working as flight attendants on the trip, serving up a bit of bubbly and shmoozing with the group. They had a good time, as did all the passengers/customers on the flight. All in all, a phenomenal event.
And then there was the party on Saturday night. An airplane hanger is ridiculously big. But when you move the planes out and bring in a catering crew, some tables and chairs, a live jazz band and set up a couple of stages for entertainment, it gets pretty cozy in a hurry. And last night was just that. When I wasn’t busy making new friends I was hanging out with old ones or enjoying the entertainment. Certainly one of the highlights was when the CEO of the company took the stage to play MC for the final round of a competition giving away 1,000,000 OnePass mile. That was pretty ridiculous, and the competition was actually intense, coming down to the very last question to decide the winner.
Oh, and there was the 737-900ER plane that they had available for us to visit. We pretty much had free reign, which may or may not have been a mistake on their part, but it certainly was fun. Many folks got to take photos in the cockpit, sitting in the engine or even in the overhead bins!
While the Friday night, Saturday morning and Saturday night parts of the event were all fun and games, there were also some serious bits to the event. The Saturday afternoon sessions gave the 500+ attendees a chance to interact directly with the managers of the various departments in the company. Have a question about the OnePass program, the web site, the in-flight catering or hub operations? They had the people on-site to answer those questions for you. Some of the sessions were better than others, as is always the case, but we certainly learned a few new things that were quite good to know. Some highlights include:
- One little nugget about the Star Alliance move. Continental Gold elites will be Star Gold. This has a significant impact on checked luggage allowances and international lounge access. In the case of the latter it is a significant improvement for gold elites.
An update on the plans to roll out LiveTV and in-flight Internet on the domestic fleet. The system is a bit delayed, but they were supposed to see “power on” of the system over the weekend. They expect it to start in commercial service by March 15 and to have all 220+ of their planes retrofit by mid-2010. The bad news is that the internet part of the service is not going to be coming at the same time. That service is expected to come online much later in the year, and that sucks. I was really looking forward to that. It was also mentioned that the in-flight internet as part of the LiveTV implementation is not necessarily the only option available. The current contract allows CO to put an additional internet service on the planes if they want to. So if something like Row44 or Aircell’s gogo service really takes off then they can always do that too. Oh, and they had a set of the seats on display during Saturday night’s session so we got to see what the system will look like. I am VERY impressed with it, though I still don’t really expect that I’ll spend much time watching TV on flights. 
There is a schedule for the deployment of the new business class seats (and we got to try them out). They are a full lie-flat seat and they are pretty nice. No, they are not perfect if you are 6’ 5”, and getting out over your neighbor from the window seat will remain an acrobatic event, but overall they are a great improvement, I think. I only spent a couple minutes in the seat, but it was comfortable both fully reclined and in the “lounge” mode. And the TV screens they have are just awesome. And they aren’t as good as the Singapore Air suites for getting two people into at the same time, but a couple folks proved that it could be done on the demo set that was set up, though it didn’t look particularly comfortable. As to the deployment schedule, they will start with the 777-200s in September 2009 and the 757-200s in December 2009. Each fleet type is expected to take about 14 months to complete. Yes, that is a long time, but it is better than them not upgrading the offering at all, and considering that even with recent cuts Continental is running their international fleet pretty much at full capacity, it isn’t particularly viable for them to do it any faster. The older 767-400s will start getting the new seats at some point in 2010 (and will likely be getting the AVOD at all seats at the same time) and the 787s will be delivered with the new seats already installed.- Speaking of the 787s, there is a date on the horizon for their delivery: Q2 2011. Yes, it really is that far away. They are running a full two years late from Boeing, which sucks. But then will be now soon enough, I suppose.
- Also on the lounge front, there was some further discussion on the reciprocal relationship between Continental and United that has started to roll out. It seems that we’re stalled a bit for now, but eventually they do expect that the relationship will be fully realized. There are apparently a lot of legal ramifications because of the existing SkyTeam relationship that have to be carefully navigated. In other words, don’t hold your breath on this unless you can survive without breathing until the end of October.
New gate display systems are coming. I had a private head’s up on this one but was sworn to secrecy until Saturday night when the system was finally on display. Continental is beginning the deployment of LCD TV gate display systems similar to the ones that Delta has at their gates. These systems show things like seat maps, in-flight entertainment and meal details and, most importantly to many, upgrade waitlist status. They also show a lot of ads if the demo we saw at the event is to be believed. The information is all the same stuff that has been available for almost a year now for folks with PDAs or other mobile devices that are connected online. And they rolled out the same information on the regular website just a couple months ago. When the gate displays go live I believe that Continental will be unrivaled in terms of transparency and access to the information that they are giving to their customers about the flights.
There were lots of other things that we did and talked about, but those are the biggest ones I can think of off the top of my head.
I want to again offer my public thanks to all the folks at Continental who work so hard at putting together these events. The events are equally as amazing as the folks who plan them. One last picture with me and a couple of the guys who work so hard on this stuff, Kerwin on the left and Scott on the right.
Tags: Boeing, Continental, Dreamliner, frequent flyer, IFE, internet, Lounge, Photos, points, Singapore Air, SkyTeam, United
Posted by Seth on December 29, 2008 under Uncategorized |
There has been plenty of hype about the quality of the premium cabin in-flight product that Asian and Middle-East carriers are bringing to the skies. Singapore Air and Emirates have invested significantly in their A380 First Class experience. Singapore offers a double bed option for couples traveling together and Emirates offers a shower, among other benefits. But getting in to those seats is going to cost you a lot of cash; they cannot be booked using all those points you’ve been saving.
Singapore Air started limiting seats in their Suites by designating them a different booking class, and therefore making them ineligible for reward bookings, even for their own KrisFlyer members. Things got worse when they changed the rules on their new business class product, allowing redemption only using KrisFlyer points and then only at the unrestricted/double points level. Among other things this took the NYC and Los Angeles to Singapore non-stop flights away from partner award bookings, as they are configured in an all business class setup using the new product.
Emirates was actually letting folks still redeem for their premium cabin seats following the launch of their A380s earlier this year, but that well seems to have dried up, too. As of December 1, however, they apparently are no longer permitting any redemptions in either the business or first class cabins on those planes.
Qantas is in a similar position, blocking out their A380 first class cabin from reward redemption. A number of enterprising folks booked reward seats on flights that were operated by the 747-400 when the reward was booked, expecting that the aircraft would be swapped to the A380. As far as I know they have been successful in keeping their reward seats, but no new reward bookings are being taken on those flights.
Ten years ago the most luxurious way to travel was arguably the Concorde. Sure, the seats were small, as was the fuselage itself, but you were wined and dined and among the elite of air travel. And all the while it was bookable with reward points. I’m not saying that there were free seats out there every day for anyone who wanted one, but at least the option (or the dream) was there.
And then, just like that, poof. The option is gone.
Premium cabin long haul flights are still, by far, the best value for redeeming points, but it certainly is disheartening to see the greatest of the options disappearing. Hopefully the allure of the A380 will wear off and those seats will come back into reward inventory, but I’m not holding my breath.
Posted by Seth on May 30, 2008 under Uncategorized |
The last operating all-premium carrier on the NYC-London route, SilverJet, has ceased operations as of this morning due to an inability to raise additional financing. They had actually announced that they’d reached terms with a group in UAE to provide them with some cash, but when they went to draw on the loan last week the money didn’t show up.
From the announcement on their web site:
Your belief in us was shared by our investors – but regrettably, due to unforeseen circumstances, they were unable to unlock the finance that we needed. As a result, we are very sad to announce that from 30 May 2008, we will cease operations and we are no longer able to honour flight reservations.
And so now all three premium carriers on the NYC-LON route have shut down. The only carrier still operating as an independent in that market is L’Avion which operates a NYC-Paris flight. And before you write off the concept of an all-premium flight operation, it is worth considering that there are some routes that seem to support it just fine. KLM operates Houston-Amsterdam on a 737 in an all-Biz config (contracted service provided by PrivatAir). Singapore Air has converted their A340-500s to all-Biz seats for the SIN-EWR route. Lufthansa has a
similar arrangement to KLM, with PrivatAir operating some flights for them as well. In the Lufthansa case they have actually used the PrivatAir operation to break in some new routes, upgrading them to full-size planes with normal seating arrangements once they have proven the demand. That makes me think that the demand issue is more one of the carriers and the routes, not the business model.
Considering how saturated the NYC-LON market is in seats – thousands daily, many of which are big and comfy – and that the corporate contracts drive more of the business than individual flying, I’m not all that surprised that these carriers struggled. Ironically, choosing less popular routes might have actually let them be successful, as would operating smaller or more efficient planes (like PrivatAir).
Posted by Seth on March 26, 2008 under News |
Singapore Air had to ground a second of their A380s yesterday, again due to an issue with the fuel pump mechanism. They experienced a similar problem about 6 weeks ago which was apparently related to an electrical relay in the fuel pump system. This time it was actually the fuel pump that failed. Two incidents so close together clearly call in to question the reliability of the big bird, though the airline has made great efforts to downplay the situation.
Posted by Seth on March 4, 2008 under News |
And nothing but business, at least on a couple of their non-stop flights from Singapore to the USA. They currently operate the longest commercial flight in the world between Singapore and Newark (and also SIN-LAX) on a plane configured with only 181 seats. They need that few because the route is so long that the plane they have (A340-500) can’t make it non-stop with more seats/people/weight on the plane. Since they already have so few seats on the plane, they’ve apparently decided to take a stab at an all premium cabin configuration on the routes, hoping that they generate more revenue from the 100ish passengers in their newest business class seats. Considering the issues the all premium carriers have been experiencing across the Atlantic, this is definitely an interesting time to make this jump. Then again, much like BA, they have the rest of their route structure to support the attempt, so they probably won’t go out of business if it fails.
Posted by Seth on February 19, 2008 under News |
Looks like the A380 – the flying whale – had a mechanical problem earlier this morning in Singapore, preventing it from making its daily trip to Sydney. The problem was apparently a failed fuel pump, though that doesn’t make a ton of sense as a replacement pump failed to resolve the issue.
Considering that the leading candidate for cause in the British Airways 777 crash landing last month is potential issues with the fuel supply system, this is a rather interesting coincidence.
Posted by Seth on January 16, 2008 under News |
A few bits on the A380, aka the Whale:
- Singapore Air managed to lose one off the taxiway due to a failure in the tug, causing it to roll into the grass at Singapore International Airport. They had to move all the passengers to an alternate plane, a 747, and replace all the tires, just in case. Fortunately it happened the same day they took delivery of their second A380, so they weren’t out of commission for too long. And now they have both back in service. Hong Kong will be the second airport served by the A380 (SYD was first), and when the third plane arrives they’ll move the HKG service to LHR (London Heathrow) as they need two planes to meet those needs. They expect to have six in service by the end of July, ahead of the oft-revised delivery schedule from AirBus.
- According to these guys via FlightBlogger one can now book for the maiden EK flight of the A380, EK201 from DXB (Dubai) to JFK on 1 October 2008. It looks like a r/t F seat with a one week stay in NYC is ~$6,700. Flying in J will set you back ~$4200 and Y is ~$1400. The article cites etravelblackboard.com saying that there will be shower facilities on the plane. Carrying that extra ton of water will burn a lot of fuel, so hopefully they are selling a lot of those F fares.
- Qantas, the third carrier to take delivery of the A380, is getting closer. Their first plane was seen on the taxiway in Toulouse today.
Posted by Seth on October 21, 2007 under News |
I know that it is big. Really big. It is called the “whale” for a reason. And yet still, on seeing the seat map for the new A380 that goes in to service this week for Singapore Air, I still can’t quite get over how big it is. There are 467 seats on the plane, including 12 First Class Suites. Four of those suites are situated such that pairs of them can be combined into double beds for couples traveling together. There are another 60 Business class seats and 399 coach seats.
It is just huge.
I probably won’t get to fly on one for a while – heck, I still haven’t flown on an A330 or A340 either – but I’m hopeful that I will get on one eventually, preferably in one of the F Suites.
Of course, Air France operates a 747-300 with 510 seats on it in an all Y configuration and a 777-300 with 472 seats in an almost all Y configuration, so this A380 isn’t the highest capacity bird out there, though it certainly carries ~70 of its passengers in much greater style than the AF 743.
