Air France announced its new first class suite on Tuesday to entice wealthy travelers from business jets and expand their efforts to lend “French Touch” for premium revenue.
Parent Air France-KLM CEO Ben Smith told Reuters that it aimed not to place Air France at the top of the airline's luxury Europa League, signaling the fight between British Airways and Luftanza.
“The majority of our customers fly for business reasons. Many of them choose to fly in first class or private jets,” Smith said in an interview.
“What's new for us over the last few years is the significant increase in the number of luxury customers flying for leisure.”
The air travel industry is trapped in the fight for customers paying luxury fares as they recover from the pandemic, but many careers focus on steady improvements in business class seats, so they are divided into the value of first class investments.
Air France's latest first class cabin is laid out in four pairs of gray red accented beds and seats on certain planes, following years of efforts to reinvent a once-loss-created product since Smith joined the National Airlines in 2018.
The Canadian executives have long been first class champions, even as many rivals cut to business class. But he said there are only a handful of airlines with depth in demand or the ability to utilize assets like France as destinations.
“Many people like to experience France. When they board a plane outside of France, they already want to start their journey from France through the air environment from San Francisco, Tokyo or Sao Paulo,” he said.
The release comes weeks after big rival British Airways launched its own new first class cabin.
Lufthansa also offers first class. Neither airline responded to requests for comment.
French brand power
Smith refused to say how much it costs to invest in a new seat, but the airline says that first-class services are already profitable as ticket prices have risen in recent years.
According to the Air France website, in May, the average only Paris New York ticket cost around 10,000 euros ($11,000).
Tuesday's development reflects the airline's efforts to hit chords with a broader reputation for French luxury as waiters passed Michelin star snacks in the presence of specially invited influencers at a Paris Fashion Week location.
However, Smith argued that Air France's “La Premier” brand could stand on its own feet as a luxury product.
Partially state-owned Air France has long been synonymous with First Class, its passenger list is very strong and was once said to have been stolen by the country's spy agency.
Now it has to compete with business class current lies flat seats and more and more accessible private jets.
Much of the cost is wrapped up in seating as well as bespoke ground services such as special check-in and limos.
There is also the hidden cost of creating a subfleet of aircraft that can only operate on a handful of routes.
“Unless it's solid, it can be very small due to operational complexity, capital investments and the risk that you can be confident you can sell in business class,” said aviation consultant John Strickland.
