seen only in first class . We ’ ve also seen the introduction of premium economy products more akin to prior business class offerings .”
American Airlines Business Class
When today ’ s passengers expect to be showered in relative luxury in business class , it certainly begs the question of why anyone would pay thousands of dollars more to sit in first – regardless of their wealth . For those who want competitive prices , there are simply more options on the market .
Krishnan , who has served the airlines and aerospace sector for 25 years , adds : “ A primary reason for the reduction in pure first-class capacity on international networks is the continued convergence of the product across generations .
“ For example , lie-flat business-class seats with privacy dividers were previously
Finance teams reluctant to blow budget on expensive travel Seeking out competitive pricing for business travel applies not just to regular passengers , but to the CFO and their teams , as well .
A punishing few years from an economic perspective means the finance function is having to be brutal in its efforts to cut costs and is scaling back on non-essentials . Clearly , we are not at the stage where business travel is being shunned altogether , but bumping corporate jetsetters down from first to business class seems perfectly reasonable in the grand scheme of things – especially if one considers the aforementioned improvements made to the latter .
Many organisations are going one step further by outright prohibiting firstclass travel as they look to tighten the purse strings .
As Raju put it last year , “ the replacement of first class with additional business offerings will allow the carrier to provide what our customers most want or are willing to pay for ,” and it ’ s a logic that adds up given the New York to London route remains one of its most popular and will likely generate more revenue .
“ The evolution of corporate travel policies at large companies , which increasingly do not authorise first class travel , is one of the main reasons for the decline of international first-class travel ,” Krishnan says . businesschief . com 93