Skift Take
There is still a market for international first class. It's just not big, and its generally on flights between financial centers. Qatar Airways is making the right decision in focusing on business class, rather than first.
For years, Akbar Al Baker, the brash CEO of Qatar Airways, promised he would introduce a business class seat so revolutionary it would make most first class products obsolete.
Last week, after many delays, Al Baker finally unveiled his patented cabin, and by most accounts, he has succeeded. Soon, on its Boeing 777s and A350s, Qatar Airways will be the first airline to offer couples seated in business class a double bed. Previously, only the most opulent first class seats, such as Singapore Airlines' Airbus A380 suites class, offered that feature.
Qatar is the latest airline to bet big on business class, calculating the massive seats and over-the-top service of first class no longer makes sense in a competitive market.
Most North American airlines gave up on true international first class several years ago, but elsewhere, especially in the Middle East, Asia and Europe, it has persisted, with carriers chasing wealthy travelers who buy tickets that can cost $15,000 or more.
Now, however, even many of those airlines are deciding it's no longer prudent to invest in six to 12 suites when the space could be better used by more business class seats. Qatar's chief rivals still invest in first class — Emirates and Etihad generally have suites on widebody aircraft — but many other airlines are examining whether they still need it, or whether business class is good enough.
Some carriers have cut first class completely, while others have removed it on poorly performing routes. Several have cut the size of cabins to four or six seats.
"With these suites that you see on some luxury carriers, the demand for that is pretty limited," said Ben Smith, president of passenger airlines for Air Canada, among the first global carriers to remove first class. "You look at the value proposition and the cost differential, and the amount of real estate it takes up can hardly be justified. There's a very small market that sits between business class an
