Singapore: With limousine pick-ups and on-board chefs, Asia's premium airlines are investing hundreds of millions of dollars on luxury services in a bet on a rebound in business from the wealthy, even as low-cost carriers fly high with the booming middle class.
Although business and first-class traffic has fallen significantly in the last few years as companies cut costs, carriers such as Singapore Airlines Ltd (SIA), Cathay Pacific Airways Ltd and Qantas Airways Ltd are estimated to still earn about 35 to 40 percent of passenger revenue from the high-margin segment.
Yields per premium passenger are around four to five times higher than those for economy class, underscoring why airlines are keen to pour money on amenities that range from luxurious cabins to fine dining.
04/07/13 Reuters/Economic Times
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Although business and first-class traffic has fallen significantly in the last few years as companies cut costs, carriers such as Singapore Airlines Ltd (SIA), Cathay Pacific Airways Ltd and Qantas Airways Ltd are estimated to still earn about 35 to 40 percent of passenger revenue from the high-margin segment.
Yields per premium passenger are around four to five times higher than those for economy class, underscoring why airlines are keen to pour money on amenities that range from luxurious cabins to fine dining.
04/07/13 Reuters/Economic Times
