The Big Squeeze: Economy Class vs First Class

THE BIG SQUEEZE: ECONOMY CLASS VS. FIRST CLASS In the early years of commercial flight every seat was luxurious, with free drinks, 7-course meals, and lots of legroom. In 1957, when flying Economy Class first became an option, it was not so very different from flying First Class. But over the years, especially as a result of airline deregulation in 1978, the gap in cost and service between flying Economy and First Class has become a chasm. SEAT PITCH COMPARISON SEAT PITCH DOMESTIC BAGGAGE FEES by carrier, 2010 CHECKED BAGS SECOND FIRST $35 $25 ($23 online) $35 (532 online) $25 ($23 online) $35 ($32 online) $25 ($23 online) $35 (532 online) no fee $25 $25 ($20 online) $35 ($30 online) $20 AIRLINE AIRLINE $25 American Airlines Continental Delta Northwest Airlines Southwest Airlines United Airlines US Airways Alaskan Airlines United ECONOMY Continental Delta American FIRST CLASS 31 no fee 78 $35 32 US Airways Thai Airways 32 $20 31" Cathay JAL 33 60 78 32 TIMELINE Singapore Airlines 81" 32 78 78 Economy Class First Class 1957 JATA creates Economy Class, with 34-inch pitch as standard size seating Average First Class seat has 42-inch pitch and includes a 7-course meal IATA 1960 Economy Class overtakes First Class as the most used travel choice 1961 First in-flight movie shown in First Class Average seat pitch for Economy Class increases to 36 inches 1964 American Airlines adds Wurlitzer electronic pianos to coach lounges on its Boeing 747s New 747s include a spacious - upper deck lounge for First Class passengers 1970 1971 President Carter signs the Airline Deregulation Act Airlines replaced nine- across seating in Economy Class on Boeing 747s with 10-across seating • Pan Am introduces sleeper seats on long haul flights • Electronic headsets replace pneumatic headsets in first class cabins 1978 1979 1980 Southwest Airlines institutes its "fat tax" policy requiring obese persons that take up more than one seat to purchase a second seat DOMESTIC U.S. AVERAGE FARE PER MILE DECREASE (adjusted for inflation) AIRLINE COMPLAINTS ON THE RISE 1997-2010 (higher number is better) 100 $0.50| 90 045 80 0.40 1985 Air Canada offers caviar for its first-class passengers 035 0 30 70 12C/mile 1957 41€/mile 0.25 50 America removes one olive from each salad to save on food costs, catalyzing the decline of in-flight meals 1987 020 2 40 NSouthwest N Continental N American Airlines N Delta NUS Airways N Northwest Airlines United Airlines 015 3 30 010 10 1957 1960 1970 1980 1990 2000 2010 1990 - American Airlines installs 97 98 99 00 01 02 '03 04 05 "06 '07 08 09 '10 personal VCRS in first class US Air stops giving economy class passengers a full can of soda to save $1M annually 1993 1996 - British Airways launches first fully flat bed seat United begins limiting economy 1997 passengers to one carry on bag Virgin Atlantic introduces its Upper Class, with 67" flat bed seats, bar with mixologist, in-flight massage and beauty treatment • America West becomes the first airline to eliminate economy in-flight meals, followed swiftly by American Airlines, Northwest and UŠ Airways United Airlines eliminates meal service in Economy Class on flights of 1,635 miles or less (about 3 hours 45 minutes) •Delta eliminates meal service in Economy Class on flights of less than 1,750 miles 2001 2003 2004 - Virgin Atlantic begins offering double beds in Upper Class United begins charging Economy passengers $2O for a second checked bag • American Airlines starts charging Economy passengers $15 for a first checked bag •United eliminates meal service on European flights from D.C. MOST PUNCTUAL AIRLINES 2010 • Jet Airways unveils First Class suites with beds, closet, television • Emirates introduces the "Shower Spa" For First Class passengers •American Airlines begins offering free On-Demand movies, music and TV for First Class passengers INTERNATIONAL CARRIERS 2007 Japan Airlines 90.95% ANA 90.37% SAS 89.11% 2008 Korean Air Lines Lufthansa 88.61% 83.21% •US Airways introduces 94-inch pitch bed seat Lufthansa partners with the Ritz-Carlton to design gourmet meals • Spirit Airlines moves to non-reclining seating with 28-inch pitch •Continental, the last holdout, starts charging economy passengers for meals · American Airlines adds $8 charge for a pillow and blanket • Spirit Airlines begins charging $45 for carry-on bags Ryanair announces plan to charge for lavatory use on short flights U.S. CARRIERS 2010 United 83.60% Southwest 81.41% Continental 80.74% 78.44% 77.71% American Delta SOURCES: Airline Transportation Association; U.S. Dept.of Transportation; Skytrax Passenger Survey; Seatguru.com; Airline Corporations; American Customer Satisfaction Index