American Airlines (AA) has confirmed that it will become the first of the “Big Three” US carriers to offer a premium economy product.

AA’s announcement comes in the midst of a growing number of international carriers that do offer enhanced premium economy seats. By capitalising on the benefits afforded by this new cabin class, the Oneworld member hopes to become more competitive with world-class carriers such as Cathay Pacific, Singapore Airlines and Qantas.

It would also allow AA to work more closely with joint venture partners British Airways and Qantas, given that both carriers already have a premium economy class offering. The introduction of its own product would enable all three Oneworld members to cooperate better in the matching of fares.

Premium economy in-flight amenities

AA’s new premium economy product will feature a leather seat with 38 inches of pitch, matching some of the best in the industry. It comes with larger touchscreen monitors, noise-cancelling headphones, AC power outlets and USB ports.

Passengers onboard will also benefit from an enhanced dining experience, with upgraded meal choices as well as complimentary spirits, beer and wine. On the ground, customers will also be able to check up to two bags free of charge, while also enjoying priority boarding ahead of those seated in the Main Cabin (economy).

Enhanced dining experience

Rollout of the new product is scheduled to begin in late 2016 and will be on the B787-9 aircraft – of which the airline has 22 currently on order. The premium economy cabin on the Dreamliner will feature seats arranged in a 2-3-2 configuration. AA also intends to offer the new class on its B777-300ERs, B777-200ERs, B787-8s and A330s, with the fitting process to be done over the next three years.

Side view

While it may be the first US carrier to offer premium economy, AA’s entry into this market segment has been slow in comparison to most of the world’s airlines. According to Andrew Nocella, the airline’s chief marketing officer, this was done to allow AA to develop a better product.

“Premium economy is offered today by many premier carriers around the world,” said Nocella. “We studied those offerings and developed a world-class product. As the world’s largest carrier, we are excited to introduce this product for our customers.”

WHAT DOES THIS MEAN FOR CUSTOMERS?

Perhaps more intriguing is how the addition of premium economy will complement AA’s existing cabin classes offerings. The airline already has a Main Cabin Extra product, which offers up to six inches of additional legroom, and it appears intent on retaining it.

Given that the B777-300ER will eventually offer premium economy, this effectively means that AA will be offering five classes on a single aircraft  – first, business, premium economy, Main Cabin Extra and Main Cabin. Some existing seats will have to be eliminated in order to accommodate the new cabin class, so the question is where will the compromises be?

Will AA follow Singapore Airlines (SIA) in reducing the number of first class seats? Like AA, SIA used to offer eight seats in first on its B777-300ER but was forced to reduce this to just four to fit the premium economy cabin into the aircraft. Or perhaps AA will choose to offload a number of Main Cabin seats. It currently offers a total of 220 seats in that class, and shaving a couple of rows from there is a possibility. The problem is that each row in Main Cabin is configured with a 3-4-3 seating arrangement, and the elimination of a single row would mean a loss of 10 seats.

The introduction of premium economy also poses an interesting question about AA’s upgrade policy. Traditionally, customers are only allowed to upgrade themselves to the next cabin class. AA’s B787 currently offers only economy and business class, which means that economy passengers are upgraded straight to business. By adding premium economy into the mix, this would mean passengers in economy would only be able to upgrade themselves to premium economy.

With the significant changes coming to AA’s frequent flyer programme AAdvantage next year (see here), top-tier Executive Platinum members will be receiving four system-wide upgrades – down from the existing eight. So not only will there be fewer upgrade opportunities, but members flying in Main Cabin will only be able to upgrade themselves to premium economy, and not business as they do now.

For more information, visit aa.com

Clement Huang