Air France announced a new suite for first-class passengers on Tuesday as it tries to lure wealthy travelers away from business aircraft and add a ‘French Touch’ to the fight for premium revenue. Ben Smith, the CEO of Air France’s parent company, said to Reuters that this unspecified amount of money was intended to put Air France at or near the top of European airline luxury leagues, a fight with British Airways, Lufthansa and others.
“A large number of our customers fly for business purposes. What’s new for us is that we have seen a marked rise in the number luxury customers who are flying for leisure,” Smith said many customers could choose between flying in first or private class.
Air travel is in a fight for high-paying passengers as it recovers after the pandemic. However, the industry is divided over the value of investing more in first class. Many carriers are focusing on improving business-class seating. Air France’s new first-class cabin is a four-pair layout of grey beds and seats with red accents on selected planes. This follows a year-long effort by Smith to reinvent a once-loss-making product.
The Canadian executive is a longtime advocate of first class, despite the fact that many rivals are moving to business class. He said only a small number of airlines could tap into the demand for France as a travel destination.
Many people want to experience France. He said that when people get on planes outside France, they would like to begin their journey already in France by observing the environment aboard the aircraft.
The launch comes a few weeks after British Airways, its arch-rival, unveiled their own new first-class cabin. Lufthansa offers first class as well. Both airlines did not respond to requests for comment.
FRENCH BRAND POWER
Smith declined to disclose the cost of the new seats, but the airline said its first-class service was already profitable in part due to the recent increase in ticket prices. According to Air France’s website, an average one-way ticket from Paris to New York cost around 10,000 euros in may.
The airline’s Tuesday rollout was a reflection of its efforts to appeal to France’s reputation for luxury. Waiters passed Michelin-starred snacks amongst specially invited influencers at a Paris Fashion Week venue.
Smith insisted however that Air France’s “La Premiere” brand could stand alone as a luxury item. Air France, which is owned in part by the state, has long been associated with first-class travel. In fact, its passenger list was so impressive that it was rumored that the spy agencies of France had bugged some seats.
It has to compete with the now common lie-flat seats of business class or private jets that are becoming more accessible. The cost of bespoke ground services, such as special check-ins and limousines, is also a major factor. The hidden cost of creating a fleet of aircraft that can only be used on a small number of routes is another factor.
John Strickland is an aviation consultant. He said, “Unless the seat is rock solid, the margins can be quite small because of the operational difficulty, the capital investment, and risk of substituting seats in business class that they were sure to sell.”
