International carriers continue to crush US competition in the cabin-comfort war

Let’s talk about bottoms for a moment. Specifically, your bottom and your bottom line. Or, in frequent flyer terms, getting the best Business or First Class seat at the best price. These should be the two drivers in deciding which airline you’re going to fly and to which loyalty programs you’re going to remain “loyal.”

As far as your bottom goes, the indicators are all saying fly international carriers whenever you can. That’s because foreign carriers, led by Singapore Airlines, British Airways, and Virgin Atlantic, are investing in the most in cabin comfort. Air Canada, Delta and Cathay Pacific have recently announced new seats cast in a similar mold as Virgin Atlantic’s highly-popular Upper Class Suite, and Air New Zealand has installed them. Even second- and third-tier carriers like Alitalia, Finnair, Korean Air, LAN Chile, LOT, Malaysia Airlines and SAS otherwise not known for comfortable seating have gotten on the bandwagon with new, above average seats.

With the exception of Northwest, most US carriers are simply not keeping pace. In fact, the international airlines’ investments in seats have allowed them to poach high-yield US business travelers over the past few years. Wake up, US carriers!

In terms of your bottom line, over the next year or two, you’ll often pay more to fly the carriers with the best seats, while you’ll have lots of opportunities to score deals on carriers lower down on the seating totem pole—who have to discount excess inventory due to lack of demand. Here’s a brief survey of the Premium Seat Arms Race.

Best in Class: Singapore Airlines

The carrier just unveiled the most exclusive First Class cabin in the air: 8 leather upholstered seats, 35 inches wide (the widest on any commercial airline), which convert to a full-size flat bed. It launches on B777-300ER aircraft flying the Singapore Paris route this month. The airlines says the new seats will debut in the US in Jan., serving San Francisco three times per week, and will expand to daily service in March.

The seats are equipped with a sleek 23-inch LCD screen with USB ports, an in seat power supply, as well as new active noise reduction headsets.

The carrier is also introducing the widest Business Class seat.It’s 30 inches wide and reclines to 180 degrees. The seat has a fixed-back shell that extends to the sides for privacy, and is arranged in a 1-2-1 configuration, allowing for direct aisle access. The seat has a 15.4-inch LCD monitor fully equipped with USB ports and in-seat power, bedding and dining-ware designed by Givenchy, and a larger dining table that adjusts for height.

North Atlantic Dogfight: British Airways Tries to Limit Virgin Atlantic Migration

By lowering the arms so they’re level with the bed, BA has widened its lie-flat bed by 5.25 inches, bringing it to 25.25 inches. While this upgrade is an improvement to be sure, this is still narrower than Virgin’s seat by up to 7+ inches. And the length of the bed at full recline is still 7.5 inches shorter. (Perhaps the mentality of the US carriers is setting in at BA.) To compensate for the lack of length, the airline has introduced the “Z position,” which is designed for those taller than six feet. In this position, the seat lengthens from 72 to 78 inches and gives extra support to the knees and back.However it means you must sleep on your back if you’re over six feet tall.

Virgin responded with an ad that shows BA CEO Willie Walsh in the new BA Business Class seat with the strapline “Sorry Willie - still 7.5 inches too short.” Still, British Airways flies more beds (5,000) to more destinations (72) than any other airline. New seats will be introduced over the next 18 months on 747s and 777s. See demo here: http://www.newclubworld.com/european/index.html

Premium Economy: The New Business Class

Virgin Atlantic’s new Premium Economy seats, coming to the US in 2007, offers seats 21 inches wide. To put this in better perspective, here are some other carriers Business Class seat width (in inches): American,20; Continental, 20 to 22; Delta, 18.5 to 20; Northwest, 20.25; and United, 19 to 20.5. Granted, the legroom and recline are less, but when you’re not sleeping, it’s the seat width that counts. The new seat blows away the competition, which means Virgin may hike Premium Economy fares.

US Carriers: Losing Ground

In the past few years, US carriers took their eye off the international premium-cabin ball, focusing entirely on competing with low-cost carriers. Big mistake. Southwest Airlines is an anomaly, not the norm; Jet Blue is beginning to lose money and doesn’t arrive on time. On the other hand, seat investment pays big dividends: Iberia claims that only eight months after introducing new Business Class seats, sales have increased 20%. That’s serious dough; and insiders tell me that 40% to 60% of all revenue for many carriers comes from Business and First Class sales.

The US carriers are losing ground, even as they announce seat upgrades. American and United are making a big deal about rolling out new seats, but by the time they do—years from now—they will be passé, even compared to those on many second- and third-tier carriers.

US carriers are still relying on the popularity of their mileage programs to keep travelers from defecting to airlines offering a more comfortable flight experience.Banking on that alone will only retain so many customers, especially as alliances—both loyalty program and routing—make most destinations accessible by more than one set of carriers. The economy isn’t bad and travelers want more comfort, even if it costs more.Look at the evidence: All Business Class flights such as EOS and MAXjet to London, Lufthansa to Germany, and even KLM from Houston to Amsterdam are doing very well. More evidence of demand is that carriers like Continental, Delta and United are jacking up the cost for ‘anytime’ awards by up to 50%.

Hey US carriers: It’s the seats, stupid!