Strengthening business demand has renewed competition among US major carriers to capture and keep high-margin premium passengers through their latest weapon of choice - premium cabins on their regional jets, including new, larger seats and potentially in-flight connectivity.
Product continuity through the sophistication of the regional jet travel experience has seen a resurgence as US network carriers turn attention to bolstering their fortresses in key business hubs such as Chicago and New York. Independent consultant and former senior manager of interiors engineering at Continental Airlines Vern Alg says an essential element of keeping premium international passengers satisfied on the last 1.5h of their journey is not cramping them into a 50-seat jet with a 16in (40.6cm)-wide side seat at 32in pitch.
Using a real-world example to validate Alg's point, Cindy Szadokierski, vice-president of airport operations and United Express, says 50% of passengers on the carrier's flights from Washington Dulles to Kuwait launched in October 2006 are connecting passengers and vice versa.
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PIONEERING UNITED
United was a first mover after launching a three-class product in 2005 on its larger regional jets that includes a first class. Its Bombardier CRJ700s offer six first-class seats, 28 in economy plus and 32 in economy, and its Embraer 170s feature six first class, 16 economy plus and 48 economy class seats. First-class pitch in the CRJ700s is 37in while the E-Jets have a 38in pitch.
Origins of United's move toward refining the regional jet product date to 2003-04 after customers in surveys and focus groups stressed the need for larger aircraft on longer flights, which led to United's pledge that its larger CRJ700s and E-170s would be deployed on flights longer than 2.5h. Delta has recently mimicked that commitment after unveiling plans to cap its 50-seat jet operations at 1,390km (750nm) or less from autumn.
Delta in 2007 unveiled plans to offer two classes on its 76-seat CRJ900s and 70-seat E-170s. The CRJ900s offer nine to 12 first-class seats with a 35in pitch while the E-170s and E-175s feature first-class seats with a 36in pitch with six and 12 first-class seats, respectively.
Delta is also adding first class on 66 CRJ700s flown by partner Atlantic Southeast Airlines, which will result in Delta operating a total of 272 domestic routes with two-class service. The modifications are being completed by a third party in Alabama, says the carrier, and Zodiac subsidiary Weber is supplying the seats for the new first-class product.
Delta vice-president of network and revenue management Glen Hauenstein stresses the importance of satisfying high-yield customers and frequent flyers in contested US markets such as Raleigh, North Carolina; Indianapolis, Indiana; and Jacksonville, Florida.
Once all the aircraft cycle into service Delta will offer first class on 219 of its larger CRJ700/900 and E-Jet families.
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United, by comparison, has 150 of its larger regional jets with its three-class product. Hauenstein says Delta offers more first-class seats that any US carrier, based on departures.
But United has stuck to its commitment to transition its signature three-class offering to its 70-seat jets. Szadokierski says to mimic the mainline offering, the carrier had to determine a way to offer the same configuration on those smaller aircraft. "It's remarkable they carried the product all the way through," says Alg.
Now American Airlines and Delta are following United. American's regional affiliate American Eagle introduced dual class on its CRJ700s in July. Szadokierski shows no concern over American's plans to add first class in regional jets in some of United's markets from Chicago. "We got ahead of the competition and it has served us well." She also believes United's economy plus offering on its 70-seat jets is more competitive than American's two-class configurations. The economy plus pitch in United CRJ700s and E-170s is 34in.
American chief executive Gerard Arpey has said the carrier's smaller regional feed puts it at a disadvantage in supporting its mainline network. But American made headway when it decided to reconfigure 25 CRJ700s with first class and configure 22 new delivery -700s with a first class of nine seats with 37in pitch.
STRATEGY
The decision underpins American's new "cornerstone" strategy unveiled last year that consists of a network realignment, emphasising flights from its hubs and focus cities of Chicago, Dallas, New York, Miami and Los Angeles.
Seat selection was key as American Eagle developed its first class on the Bombardier product, and the carrier did not take the evaluation lightly. The airline says former American Eagle chief executive Peter Bowler and other employees tested seats in Bowler's office, and Zodiac was the victor. American selected the nine-seat offering to remain consistent with the two-by-one configuration of the Bombardier cabin, and to offer the customer a generous amount of legroom, the airline says.
The push behind American's decision to revitalise its regional product is no different from United or Delta's reasons for offering similar products - ensuring the highest-margin customers are satisfied through a first-class offering with a meal service.
American's customers in surveys have pushed for first class on larger regional jets and American Eagle says keeping its product competitive in the marketplace is crucial.
Both American's rivals offer first class in their E-Jet families. Alg says the E-Jet product lends itself to a better first-class offering since the aircraft have lavatories and galleys for in the front and rear. With the CRJ700/900, food for economy passengers is carried through first class, which could diminish the experience for premium passengers, says Alg.
Regardless of the aircraft type, Alg stresses that any jet flying in the 2-3h range needs a first class going forward. "Business class customers and frequent flyers will not be satisfied sitting in coach," he says.
Even turboprop manufacturer ATR has decided to offer a first class in its new -600 variant that operates shorter stage lengths than two-class regional jets. The manufacturer says the standard first-class configuration is a 36in pitch in two or three rows. But those numbers are adjustable based on individual airline requirements, ATR says. The European airframer is working with Italian designer Armonia on the design of the -600 cabin, while Geven is seat supplier for first and economy classes on the new ATR-600.
"Since the ATR family provides the lowest costs for the short-haul sectors, we believe that it only makes sense to offer the same dual-class product for our prospective clients," say Guillaume Gasparri, president ATR North America, and Mark Neely head of marketing and sales for ATR in the region. "The new cabin has been well received by potential clients to meet their needs."
PRODUCT EVOLUTION
Pressure is likely to continue from premium customers for even more enhancements to make the product on regional jets seamless as mainline in-flight entertainment offerings become more sophisticated and wi-fi access in flight becomes more prevalent.
Alg believes the next step in first class on regional jets is in-flight entertainment, pointing to early adapter Air Canada, which has offered seatback entertainment in its two-class Bombardier CRJ705 for about five years.
Delta has emerged as the most likely first mover in offering wi-fi on its larger regional jets. Network vice-president Hauenstein says the carrier is seriously considering offering connectivity on its larger regional jets. Delta launched a fleet-wide installation of the Aircell wi-fi product Gogo on its domestic mainline aircraft in 2008, and aims to complete installations later this year.
United it also considering offering wi-fi and installing power ports on its larger regional jets as part of its continuing evaluation of evolving the product on those aircraft, says Szadokierski, but the carrier has no firm timeframe for making its decision.
Wi-fi is not under consideration for offer on the two-class CRJ700s flown by American Eagle. "It is just not something that is in the plans at this point in time," says the carrier.
WORTH THE COST
Ask any airline revenue management team if the cost of taking seats out of smaller aircraft is recouped and they are likely to offer hundreds of different scenarios.
"Airlines have to balance the economics along with the amenities offered when looking at any airplane. As has been demonstrated with the 70 and 76 dual-seat regional jets, the dual-class configuration is becoming more of the standard with larger regional aircraft," say the ATR North America executives.
A two-class service on regional jets takes off some capacity, but American Eagle says that revenue is "recaptured in a different fashion" from premium customers.
Alg says most airline teams have made unit revenue and unit cost calculations that would support at least eight seats in first class on the larger regional jets. "But you pay for that," he says. Most of the time carriers are offering first class to satisfy the premium passengers, he says, "the people that pay the bills", and to make their frequent flyers feel special.
Regional jet FIRST-CLASS seat pitch
Source: Flight International
