Skift Take
Asian airlines still cling to first class, but is the product necessary anymore? Some carriers are rethinking their strategies.
When Malaysia Airlines added its first Airbus A350-900 about a year ago, Airbus hailed it as the first carrier to install first class on the new jet, outfitting its cabin with four seats, each with privacy doors.
But there was a problem: By global standards, the cabin wasn’t opulent and customers weren't paying hefty premiums to sit in it. So late last year, Malaysia redefined its marketing, turning what was an average product into a “Business Suite,” with many perks of first class at a lower price. Malaysia also renamed the larger first class suite on its Airbus A380s.
It was an admission that Malaysia didn’t have the product — or the route network — to compete with Asia’s biggest airlines, like Singapore Airlines and Cathay Pacific. These airlines can profitably sell first class on many flights for $10,000 or more, attracting customers by offering gigantic seats, caviar, and Dom Perignon and Krug champagne.
A Newish Trend in Asia
But in not completely squashing its most premium product, Malaysia joined a newish trend in Asia. Rather than go business class-only, like many North American and European airlines do, some Asian carriers have set aside a handful of premium seats for customers willing to pay higher-than-business class prices. Malaysia is betting passengers, including executives and government officials no longer permitted to buy first class, will seek out a more private cabin with more personalized service.
"There are 12-14 major routes around the world where people actually pay f
