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According to a news report on Appledaily in HongKong (original content in Chinese) yesterday, Cathay Pacific is fearing that the current massive reduction of business class demand may be permanent, as businesses found that their employees can actually tolerate economy class seats or found that tele-conferencing isn't that bad. As a result, the airline is looking into launching premium economy class. If premium economy is launched, some business class seats on aircraft will be taken out to accommodate the new premium economy class cabin, thereby reducing the supply of business class seats.
The fare of premium economy is reported to be about 70% higher than economy while business class fares are typically over 300% more expensive. A sample fare comparison between HongKong and London (LHR) will be like this:
Economy: US$550 round trip (current discounted economy fare)
Business: US$4000 round trip (current business fare)
Premium Economy: US$950 round trip
This fare will be attractive to middle class leisure travellers who can afford to have better service and more leg rooms but cannot afford the business class fare.
The fare of premium economy is reported to be about 70% higher than economy while business class fares are typically over 300% more expensive. A sample fare comparison between HongKong and London (LHR) will be like this:
Economy: US$550 round trip (current discounted economy fare)
Business: US$4000 round trip (current business fare)
Premium Economy: US$950 round trip
This fare will be attractive to middle class leisure travellers who can afford to have better service and more leg rooms but cannot afford the business class fare.
