Flying economy, premium economy, business, first class: What’s the deal

Flying economy, premium economy, business, first class: What’s the deal

Air India, the Tata group airline, has said it will offer premium economy seats when it introduces wide-bodied B777-200LRs to offer more flights to the US.

What is the difference between economy, premium economy, business class and first class seats?

Economy class

All airlines started with first-class seats. Delta Airlines started toying with the idea of accommodating more passengers on a flight by offering smaller seats.

First, it started separate flights for first-class and “coach cabin” travellers. The “cabin coach” came to be known as “economy” class seats. It is the basic class: seats are narrowest and have the least legroom.

It is the cheapest and bestselling class of seats. Air India and Vistara, another Tata-owned airline, offer in-flight meals for economy class passengers, but this is not a common industry practice.

Premium economy class

In 1992, Virgin Atlantic was the first airline to launch premium economy class. Other airlines caught on later.

Premium economy passengers get benefits like a dedicated lounge at the airport, more food options and in several airlines, a more favourable location of seats.

On international flights, the premium economy cabin is away from the economy class. Premium economy seats allow passengers to carry extra baggage. Some airlines allow priority check-in at the airport.

Seat size and legroom may not be significantly different from economy class, but premium economy seats cost more than economy.

In India, Vistara is the only airline that offers premium economy seats.

Business class

These seats are the median between the economy seats and the first-class seats. The service was first introduced by Pan Am and Qantas airlines.

Business class offers recliner seats, angled lie-flat seats, fully flat seats, and cabin seats. The legroom is more than economy and premium economy classes. Dining includes a wider choice of food and drinks. Seats are away from other classes.

Business class is cheaper than first class but costs more than economy. Passengers get reservations at the airport lounge and the option of priority check-in. Business class seats offer in-flight Wifi.

Some airlines also offer chauffeured pick-up and drop-off services to business class travellers.

In India, Air India, Jet Airways and Vistara offer business class seats on domestic flights. Qatar Airways, Singapore Airlines and Etihad Airways are the best-known international airlines for their business class.

Emirates has a dedicated bar for business class travellers.

First class seats

The best seats –usually bought by the rich– offer a thick layer of luxury. The seats are bigger and some airlines even offer individual suites.

The standard of service is the highest in these seats. The standard of food is top-notch with many dishes cooked by Michelin-starred chefs.

In India, Air India used to offer first-class seats on domestic flights but discontinued in 2019.

Singapore Airlines, Lufthansa, Emirates, and British Airways are famous for their first-class seats.

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Air India leases 30 planes to boost operations, offer premium economy class

Air India leases 30 planes to boost operations, offer premium economy class

Air India said on Monday it has leased 25 Airbus narrow-body aircraft and five Boeing wide-body planes, which will enter service from December.

This is the first major expansion of Air India’s fleet under the Tata Group, which took control of the airline on January 27. A wide-body plane has a bigger fuel tank that allows it to travel longer distances, such as India-US routes.

“The aircraft being leased include twenty-one Airbus A320neos, four Airbus A321neos and five Boeing B777-200LRs,” Air India said. The lessors will deliver the planes by 2023-end, helping the airline increase its fleet size to 143 aircraft.Also Read | Tata Sons may have to write off Rs 2,600 cr AirAsia India’s losses: Report

Changing its business model, Air India will offer premium economy class too. The five B777-200LRs will have premium economy class.

Vistara, which is a 51:49 joint venture of Tata Group and Singapore Airlines, is the only other airline in India that has premium economy class in its planes.

To expand its fleet, Air India will also be purchasing planes and has been in discussion with Airbus and Boeing for the last couple of months.

Air India’s narrow-body fleet comprises 70 aircraft, of which 54 are in service. Its wide-body fleet stands at 43 aircraft, of which 33 are operational. The rest of the existing narrow-body fleet and the wide-body fleet will progressively return to service by early 2023.

The airline said that the leased B777-200LRs will join the fleet between December 2022 and March 2023, and they will be deployed on routes from Indian metro cities to the USA.

“Mumbai will see the addition of flights to San Francisco as well as to both of the New York area’s international airports, Newark Liberty and John F Kennedy, while Bangalore will receive a 3x weekly service to San Francisco,” it said.

The four A321neo aircraft are expected to join the Air India fleet in the first quarter of the calendar year 2023, while the 21 A320neo planes will be inducted in the second half of 2023, it said.

These narrow-body planes will be deployed in domestic sectors as well as to short-haul international destinations.

Two months back, Air India increased the retirement age of its pilots from 58 to 65 as it has been working its fleet expansion plans.

“After a long time without significant growth, Air India is delighted to resume expanding its fleet and global footprint… Air India has exciting expansion and renewal plans, of which these new aircraft are just the beginning,” said Campbell Wilson, chief executive officer and managing director of Air India.

Air India will redesign flight schedules, hold nightly meetings, and ask employees to accurately report flight delays and their causes to improve the carrier’s on-time performance (OTP), Campbell had said earlier this month.

The Tata Group on October 8 last year won the bid for Air India at Rs 18,000 crore.

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Air India takes Rs 60,800 cr cover for its fleet, paid Rs 266 cr premium

Air India takes Rs 60,800 cr cover for its fleet, paid Rs 266 cr premium

Air India, under its new Tata management, has taken a Rs 60,800 crore ($8 billion) cover by paying Rs 266 crore premium to a clutch of insurance companies, including Tata AIG General Insurance.
ALSO READ: Tata subsidiary joins insurance consortium to provide cover to Air India
The airline managed to get a better deal as it valued its fleet lower by almost $2 billion. The new management held extensive negotiations – both in India and London, to get a good deal considering the rising premiums due to the ongoing Russia-Ukraine war. As per the new policy, the airline will not be able to fly over Russian and Ukrainian airspace due to the conflict.

The new cover, effective April 1 for a year, will be marginally higher than Rs 258 crore paid in the last financial year by the airline under its previous owner, the Indian government, said a source close to the development. In the last financial year, the airline had taken a cover of Rs 76,000 crore ($10 billion). The policy also includes passenger liability in case of any mishaps. A Tata group spokesperson did not comment on the cover.

As of now, Air India has a fleet of 117 aircraft while Air India express has a fleet of 24 narrow body aircraft.

Tata AIG General Insurance for the first time received a 30 per cent share in the cover while one of its parent, AIG continued to be the re-insurer leader of the new policy. New India Assurance has taken the highest share of 40 per cent of the policy while ICICI Lombard has received six per cent share in the policy.

The Indian companies will pass on 95 per cent of the premium and risk to the foreign reinsurers so as to de-risk their books in case of any accidents.

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