May 18, 2024

Airlines Offer More Comfort for Business Class

Those flat-bed seats for international business-class fliers? Now that most airlines offer them, they are not so special anymore.

Instead, in the newest iteration of the battle for deep-pocketed fliers, the airlines are introducing an ever-growing assortment of in-flight amenities to go with those seats.

Delta Air Lines, in the latest move, plans to announce on Tuesday that a partnership with Westin Hotels and Resorts will give business-class passengers on international and transcontinental flights “Westin Heavenly In-Flight Bedding,” starting this summer.

That follows the introduction in the last two years of upgrades in business-class services by airlines like American Airlines, United Airlines, Virgin Atlantic, Lufthansa, Cathay Pacific and Qantas, featuring everything from improved mood lighting and in-flight entertainment to designer amenity kits and the option to pre-order meals by e-mail.

Carriers are willing to invest in the services, said Henry Harteveldt, an analyst for Hudson Crossing, a travel industry consultancy, because “profits from long-haul, international premium cabins can be five times greater, or more, than what is earned in economy, and several times greater than what is earned on domestic or regional flights.”

“Since the end of the last financial recession in 2010, we’ve seen the beginning of reinvestment by airlines in their products,” he added. “It reflects the normal cycle.”

Peter J. Bates, president of Strategic Vision, a marketing communications company in Tarrytown, N.Y., said that “as airlines consolidate into smaller groups, they are continuously trying to find ways to gain market share and differentiate their product.” He added: “This goes in phases. Now that the airlines have gone through the flat-bed phase, they have to create more bells and whistles to differentiate themselves.”

Carriers no doubt also want to respond to what Egencia, the travel management arm of Expedia, identified in research last summer as companies’ “increasing willingness to bump their travelers” to business or first class on “flights lasting more than nine hours.” Egencia said 45 percent of business travelers were permitted by their employers to travel in such seats “on flights over nine hours, compared to just 6 percent of business travelers on flights lasting less than nine hours.”

Delta’s Westin bedding is part of a new, broader strategy to cater to the need for a good night’s sleep, company executives said. They pointed to customer research, which has shown that this is the top priority for all passengers, regardless of their class of service.

Tim Mapes, Delta’s senior vice president for marketing, said, “The airline that comes to represent a good night’s sleep in the minds of customers will be the airline that attracts a disproportionately large share of customers.”

To that end, Delta worked with Westin to create a comforter as well as sleeping and lumbar pillows and pillow cases. The hotel chain introduced its “Heavenly Bed” program, featuring a pillowtop mattress and special sheets, pillows, down blankets and duvet, in 1999, and briefly collaborated five years ago with United Airlines to offer special bedding on transcontinental flights and Westin seating, lighting and scent in some airport lounges. Delta will begin offering the new bedding this summer in business-class cabins on all international flights, and on flights from Kennedy Airport to Los Angeles, San Francisco and Seattle, and from Atlanta to Honolulu.

In addition, Delta is training its pursers, who supervise cabin crews, to change in-flight procedures to provide a more restful environment by, for example, streamlining public announcements, closing overhead compartments gently and controlling lighting. Delta’s in-flight entertainment system has a new “white noise” channel, and the carrier is creating an express meal menu, with lighter fare and one-step delivery, for transcontinental business-class passengers. The menu is already available on many international flights.

Article source: http://www.nytimes.com/2013/02/26/business/to-court-well-heeled-customers-airlines-offer-more-amenities.html?partner=rss&emc=rss

DealBook: Virgin Atlantic Joins Bidding for British Midland

PARIS — The German flag carrier Lufthansa confirmed on Monday that Virgin Atlantic Airways had made a bid for British Midland International, ratcheting up a contest with the parent of British Airways for access to the troubled carrier’s coveted takeoff and landing slots at Heathrow Airport.

The move comes barely a month after the International Airlines Group, which owns British Airways and the Spanish carrier Iberia, announced that it had reached a preliminary agreement with Lufthansa to buy British Midland, widely known as BMI, for an undisclosed sum.

“We are now talking to both to I.A.G. and Virgin,” said Aage Duenhaupt, a spokesman for Lufthansa. “We expect those talks will continue over the next months, with hopefully a decision to be made within the first quarter of next year.”

Virgin Atlantic, which is owned by Richard Branson‘s Virgin Group and Singapore Airlines, also confirmed that negotiations were under way “on the next stage of the purchase,” but did not disclose further details.

The International Airlines Group has been eager to expand its already large presence at Heathrow, agreeing to buy six takeoff and landing slots there from BMI in September. That deal increased the company’s control at the airport, Europe’s busiest, to 45 percent.

BMI, the second-largest carrier at Heathrow, controls 9 percent of the slots at the airport, which is also operating at maximum capacity after plans to build a third runway were abandoned last year. Virgin Atlantic controls 3 percent of Heathrow’s slots. In a statement, the airline said a takeover of BMI by the International Airlines Group would be “disastrous for consumer choice.”

Analysts have predicted that competition regulators would be unlikely to accept the group controlling more than 50 percent of Heathrow slots, so it is expected to sell some to a competitor to get the transaction approved.

It was not immediately clear whether Virgin Atlantic’s bid was still being supported by financing from Etihad Airways of Abu Dhabi, which had earlier considered a joint bid for BMI. Representatives of both airlines declined to comment on Monday.

Mr. Duenhaupt of Lufthansa said discussions were taking place with Virgin Atlantic representatives, but he added that he did not know if Etihad Airways had a role in the bid.

A report in The Times newspaper said Virgin Atlantic had offered about £50 million ($77.7 million) for BMI. The report, which cited unidentified bankers familiar with the transaction, said the offer was about half the value of the proposal from the International Airlines Group, as Virgin expected to confront fewer regulatory hurdles to a deal.

Both Virgin Atlantic and the International Airlines Group declined to comment on the report.

BMI has three business units: a traditional carrier serving Europe, the Middle East and Africa; BMI Regional, which serves Britain; and bmibaby, a low-cost carrier. Neither the International Airlines Group nor Virgin Atlantic has expressed interest in either BMI Regional or bmibaby, according to people with knowledge of the discussions.

BMI said in October that it was in “advanced discussions” to sell BMI Regional to a British investment group, which it did not identify, by the end of this year. The fate of the low-cost business remains unclear.

Article source: http://feeds.nytimes.com/click.phdo?i=368bafb04bcd4486374c1325728ece97