United Airlines didn’t exactly “wow” people when it unveiled the interior of its first Boeing 787 last week. Whilst aviation enthusiasts continue to wax poetic about the common attributes of all 787s – super-sized dimmable windows and luggage bins; and a cornucopia of LED lighting settings – some flyers have expressed their disappointment at United, decrying everything from the carrier’s decision not to adopt the 787′s striking arching entryway to its choice of seats and upholstery.
I endeavoured to explain the reason why parts of the cabin – specifically the economy-class seats and the inflight entertainment systems – look somewhat passé, noting that these particular items were ordered years ago and have sat in storage waiting for the long-delayed aircraft to be delivered. I also pointed out that United has been pressing Boeing to cut into 787 production to install the latest-generation integrated IFE/seats for economy class, as well as airborne connectivity. Someone on the popular Flyer Talk forum said my post “at least explains why it looks a bit 2007, even if it doesn’t explain why it looks a bit 1992″.
Well, touché.
The truth is that North American carriers are notoriously conservative with their branding – they favour a palate of blues and greys – as well as with their seating choices. Unlike their foreign partners, they generally don’t make sweeping statements in business- and first-class. United is no exception to the rule, even adopting the same “BusinessFirst” seat for the 787 as installed on merger partner Continental’s long-haul aircraft. As Ronn Cort, the new president of aircraft interiors firm Kydex, says: “When it comes to branding there is the North American strategy, and everybody else’s strategy, and you know the difference. The difference is that branding in Europe and Asia is about an experience and branding for North American airlines is about colour.”
Even so, and in spite of management’s behind-the-scenes efforts to improve IFE and bring connectivity to the 787, United missed an opportunity to improve the overall passenger experience aboard the newest addition to its fleet, suggests well-known airline, hotel and travel analyst Henry Harteveldt, who co-founded Atmosphere Research Group. (See a photo tour of the United 787 interior here.)
Says Harteveldt: “I recognize this aircraft is woefully late in being delivered and United is probably by now saying, ‘Just get me the bloody airplane’. But where were the Continental people when they were envisioning this [787 interior]? Did they talk to seat manufacturers? United itself and Continental both have goofed with not having direct aisle access for BusinessFirst. That is a critical thing for the business traveller. Could they not have gone to the seat manufacturers and said: ‘We need six across for the economics to work; how do we get a seat that will give us what the traveller wants which is direct aisle access?’”
Harteveldt notes that American Airlines “made a decision with the Boeing 777-300ER to revamp its business class and go with direct aisle access; and Delta has done it with direct aisle access in business class. The customer is going to look at this [United 787] and say, “Okay, this is what United has to offer; who else is flying?”
Absent any point of differentiation, says Harteveldt, travellers opt for the cheapest price. But when a carrier dramatically improves the passenger experience – and backs up its efforts with strong on-time performance and baggage handling – travellers will pay more.
Harteveldt notes that Atmosphere Research Group’s data show United’s leisure passengers earn “very respectable annual incomes” of about $92,500, and some 53% of United passengers will consider paying a reasonable premium for noticeably more comfort if they’re made aware of it.
“United wants to be seen as a premium airline. They want to earn premium yields. Well, they have to earn it, and that takes work,” adds Harteveldt.
Do you agree with Harteveldt’s assessment? Have your say in the comment section of this blog.
August 8, 2012 at 2:54 am
I agree that United’s Biz First product did not blow me away, but really neither did JAL’s. I haven’t seen ANA’s international interior on the 787, but the domestic was okay for a domestic aircraft. The only 787 interior that has really blown me away has been Qatar’s.
I think American’s plans are amazing and would love to see it happen, but with the bankruptcy and possible merger with USAir, who knows if it will ever happen.
I have to say out of all the 787s I have been on to date, the United one felt the most institutional, but not necessarily bad.
David
August 8, 2012 at 12:03 pm
From a branding and furnishings perspective, the interior of Qatar’s 787 did look stunning, and it’s wonderful that the carrier will offer Y-class passengers not one but two screens (the second being the new Thales Android-based handset). However, even Qatar is planning to alter the Y-class seats on the twinjet to fix an armrest issue. Additionally, Qatar wants the Thales/OnAir connectivity solution linefit on the 787. Whilst Boeing is providing some provisioning on a linefit basis, post-delivery mods are understood to be occurring at Boeing’s Commercial Aviation Services.
I think it’s interesting that many of the airlines taking these initial 787 deliveries are already planning changes in one way or another (United included). I haven’t tried the CO BusinessFirst seat, but I’ve found in my travels that the prettiest and most stylish seats are not always the most comfortable. And, on the flip side, sometimes the more clunkier-looking beds provide a good night’s rest (I still praise the old BA World Traveller Plus seat and it looks like a dinosaur to some). One man’s prison is another man’s castle!
August 8, 2012 at 1:44 pm
Harteveldt notes that Atmosphere Research Group’s data show United’s leisure passengers earn “very respectable annual incomes” of about $92,500, and some 53% of United passengers will consider paying a reasonable premium for noticeably more comfort if they’re made aware of it.
That sounds authoritative enough, but think about these figures:
On 8/30, United can fly you from LAX to LHR non-stop in Business Class for $5101. If you sit in the Economy Cabin, the same flight will cost you $1492. The difference is $3609.
Is $3609 a “reasonable premium” for a “leisure passenger” that earns $92,500 per year?
Well, if that passenger has paid her taxes in any western country you want to name, her disposable income is about half her “respectable annual income”. So that $3609 represents about 8% of her annual disposable income. WIth this in mind, it seems very unlikely that United is selling these seats to their average leisure customer. More likely, they are giving them away as upgrades while they pray that somebody shows up to actually buy the seat.
Worse, the 53% figure is very misleading. What is a “reasonable premium” over the coach fare? How about $214? Would the 53% go for that?
Bad news: 100% of the passengers are paying $214 in taxes on that coach seat — about the same as UA is charging for “Economy Plus” in the coach cabin.
It seems like this industry is full of experts who want to keep talking about premium service as if it will save the airlines. But in truth, those days are gone for leisure travel.
Give poor UA a break. If they figure all this out, they will simply remove more Business Class seats. Shhhh… I still haven’t used all those CO miles yet.
Finally, consider that each time one of us rides in coach for $1492, we are entitled to 5456 OnePass miles plus a 2728 mile bonus (=8184 miles). The round-trip gets us 16368 miles total. It takes about 5 such trips to qualify for a free Business Class seat, so UA is actually selling those coach round trips for about $258 (=$1492 minus ($5101/5) minus $214 tax), assuming we use the miles for a free Business Class trip, but of course, they are praying we don’t come back!
Just consider what this means. UA is flying thousands of coach passengers back and forth from LAX to LHR for $129 each way. At least, that’s all UA gets to keep of the bargain — if those passengers ever redeem their mileage. You could go out of business selling seats that low, except that a few folks will shell-out $100 for “Economy Plus”, which almost doubles UA’s actual revenue per flight leg — for fewer than a third of the seats on the plane.
Conclusion: United is surviving on people who don’t redeem their miles (moved, died, etc.), and those who will pay $100 for “legroom” — not attached to any other service or amenity.
This may say something about why their service is so spectacular in the first place.
Hope you’re doing well. Be skeptical.
August 9, 2012 at 4:22 pm
What is direct aisle access? I know what it sounds like, but for the life of me cannot figure out how 6 across in Business Class can give everyone access to an aisle without crawling over someone. Delta’s 777s are four-across…can’t picture getting two more seats in there with only two aisles.