Pointy end shake-up: how first class, business, premium will look soon

Some airlines, including SIA and Emirates, are hanging onto their A380s while also acquiring new-generation aircraft types. Many airline bosses, including Emirates president Sir Tim Clark, have argued there’s no like-for-like product yet with which to replace the A380.

Given Qantas will have a monopoly on long haul direct ex-Australia, it can take the risk of having to fill all four classes. “These are routes no one else will offer,” Joyce says. “Customers have shown they will pay the premium [price] to fly direct in business and premium economy, and that’s the type of premium we think we can get in first. These non-stop flights do stimulate and generate extra demand.

“Qsuites are by far the best business-class product in the skies and a lot of carriers are now copying that model,” says Thomas. “The Qsuite future benchmarked what business will move towards over the next five years.” Etihad might be losing The Residence and the apartments but it is continuing as a four-class carrier, albeit one that is more judicious about exactly which routes it offers the most first-class seats on. Recent moves to green its image are at last paying off: late last year, Etihad was awarded Environmental Sustainability Innovation of the Year by the Centre for Aviation .

Compared to regular economy, you get about an inch or so extra pitch, a slightly wider seat, and improved food and wine offerings. But you still can’t get flat. Aviation insiders point out that passengers only get around 25 per cent more space and general value from premium economy than economy, albeit with fares around 50 per cent higher than an economy ticket. Hence, competition in this class is ramping up.

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Budget surplus a result of ‘bracket creep’: Shadow Finance MinisterThe reason the budget is forecasting a higher surplus than expected is due to “bracket creep”, according to Shadow Finance Minister Jane. “Commodity prices are so high and of course because inflation is high, that means that so many Australians are being pushed up into a higher tax bracket through bracket creep,” she told Sky News Australia. “That’s what’s caused this increase in revenue. “But really, if Jim Chalmers was such a good economic manager, why is he then forecasting a deficit in every budget year from here right through the forward estimates for the next four years.”
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