Does First Class Make Sense for Airlines?

Abstract

This topic reflects the behavioral characteristics and the measurement of first class air travel worldwide. Airlines in the East are pushing the boundaries and investing heavily on their first class cabins and potentially competes for their premium passenger. On the other hand, first class market in the western part of the world has been disappearing for decades and rather replaced with improved business class cabins. The worldwide shock of most recent economic crisis had a downward impact on the premium air travel and the post economic impacts were followed by some carriers cutting their first class capacity. The purpose of this research is to highlight whether first class make sense for the airlines to retain? This study is carried out with the research that some airlines have specifically targeted their routes that can fill expensive first class seats, and these were reflected by the strong presence of global business centers whereas others were diminishing due to less lucrative demand. This research will also show the complexity of airline hard product around the world and how they encounter to retain their premium passenger.