Kenya: Airlines Turn Focus to Business Class Seats
 

AIRLINES are shifting their attention to fill their business class seats as economy class faces stiff competition from no frills airlines.

The shift has mainly been driven by the increase in smaller and no frill airlines which are eating into the economy class market share of the bigger airlines.

However, the major airlines are able to make more money on their upper classes due to the high price tags.

Kenya Airways has pegged part of their growth on this class. The airline recently selected new wines to be served to their customers once it re-launches its premier class.

During a Press briefing in October the airline's chief executive officer, Mr Titus Naikuni, said that growth in the economy class had slowed down even as the airline expanded its capacity.

The airline, which mainly offers two cabins, has over 3,000 economy seats on its Boeing fleet and 392 seats on its Premium Class, which mainly targets business travellers.

The move is in accordance to the global trend where airlines have invested millions in promoting their upper classes, which have proved to be quite profitable for the airlines.

Speaking to Business Daily, the marketing manager of Virgin Atlantic in Kenya, Ms Ninlanthi Manatunga, noted that their Upper class is the most profitable class for the airline.

The airline, which launched its services in June this year, offers passengers three different cabins, Economy, premium economy and upper class. Virgin is well known for its onboard bar and beauty treatments like manicure and massage options for its upper classes on top of limousine services.

On the Nairobi-London route, the economy class still remains the preferred cabin of choice mainly due to competitive pricing by the airlines. Currently Virgin is charging Shs941,821to fly to London.

An Internet enquiry by Business Daily showed the cheapest ticket-on the same route - on Kenya Airways Premium class is Shs4,754,455 while the premium economy ticket ranges between Shs1,639,467and Shs3,327,770 while upper class tickets start from Shs3,137,498 on Virgin Atlantic.

British Airways' premium economy tickets start at Shs1,918,525, business at Shs4,213,780while First class lowest charge is Shs6,976,457.

For this price one gets to enjoy a full flat bed, private seat layout, individualised service and laptop power points.

Most airlines competing on the Kenyan route still rely on their economy class, which has the most sale offers.

In turn, the price tags on the upper classes are used to subsidise the discounted fares. However, on the domestic front most travellers are faced with little cabin choice as most airlines only offer one cabin.

Speaking to Business Daily on phone, Jet Link's marketing manager, Jackie Okutoi stated that the airline was all economy, but offered different fare levels for round trip tickets.

"The price levels depend on how long the return date is, the longer one takes the more expensive it is," she added.

Kenya Airways mainly flies its Embraer and Saabs, which offer economy class. Globally, the economy class has had to contend with the increase of low cost carriers as prices of tickets soar. Due to this, most airlines have invested on improved upper cabins in the past decade.

When flying in the upper classes, one gets to enjoy different privileges compared to economy class travellers.

Today at almost all major airports, including JKIA, upper class flyers have a separate check-in area or at least their own row.

 
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