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MAY 2019

Week 20

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Air New Zealand to ‘desegregate’ economy with different seats

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May 17th 2019

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2020 will see a new extra-legroom branded product to supplement premium economy. Read More »

Air New Zealand (Air NZ) plans to change its economy class product from 2020. There will be a new sub-cabin with seats featuring extra legroom, chief revenue officer, Cam Wallace, told the New Zealand Herald. The seat will bridge the product offering between economy and premium economy.

This means Air NZ  will have three economy products (standard seat, SkyCouch and new extra space seat) and two premium ones (premium economy and business). This is part of Air NZ’s effort to “desegregate” economy, Wallace told the newspaper.

Such extra legroom seats were popularised by United Airlines, which had an improved economy product before the launch of a dedicated premium economy cabin. An economy plus-type offering was more simple than premium economy, but left revenue on the table.

Delta Air Lines has found success doing what Air NZ seems to have in mind: offer economy, extra-space economy and premium economy. Delta does not have the SkyCouch. One difference at Delta compared with its peers is its strong branding of all its cabins. The Atlanta-based airline calls its more spacious economy product Delta Comfort+. Soft amenities and food are improved for Comfort+ passengers.

Wallace did not disclose any branding details or differences aside from physical seat layout. Wallace said Air NZ hoped to charge NZ$150-250 (US$98-163.5) more per seat.

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