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NBC News
5 days ago
- Business
- NBC News
Caviar and privacy: Airlines' business-class wars are here
DALLAS — Armed with dollops of caviar and handfuls of Bang & Olufsen headphones, U.S. airlines are duking it out for international business-class dominance. There are even differences between seats in the same cabin. Next week, American Airlines plans to start flying its upgraded business-class 'suites' that feature today's premium-class must-have — a sliding door — and other features like a 'trinket tray' and a wireless charging pad. Within the cabins on its subset of Boeing Dreamliners, which American is calling the 787-9P (the P stands for premium), there will be eight 'Preferred' suites that the airline says will have 42% more 'living area.' They'll be first come, first serve with no upcharge, at least for now. United Airlines is hoping to outdo its rivals by putting doors on its Polaris long-haul business class seats; creating a new option at the front of the cabin called 'Polaris Studio,' which has an ottoman (for a visitor); and installing 27-inch 4K screens. The studios are 25% larger than regular suites, United says. It hasn't yet said how much more it will charge for the studios over the standard suites. Having an even-higher tier of seats within long-haul top-tier classes has been catching on. Virgin Atlantic has the 'Retreat Suite' at the front of Upper Class on its Airbus A330s and Lufthansa is offering a two-person suite in its new Allegris first class that can be converted into a double bed. Etihad has a three-room option called 'The Residence' on Airbus A380s, which can cost $20,000 or more for a one-way ticket between New York and Abu Dhabi, though the airline varies how it uses those jets. 'The experience here is a way to give not only our existing customers a wider range of products to pick from,' Andrew Nocella, United's chief commercial officer, told reporters earlier this month. 'We just didn't have something better, and now we do.' American and United took a page from Delta Air Lines, the most profitable U.S. carrier, which already offers suites with sliding doors in its Delta One cabin. The Atlanta-based carrier, in turn, last year opened a dedicated lounge for the highest-tier customers, a move American and United had already made. Betting on business Business-class tickets are costly for many consumers. A ticket aboard American's new suite, leaving Aug. 8 and returning a week later, is going for $5,747 from Philadelphia to London, compared with $867 in standard coach. Getting more customers to pay up for pricier seats is key for an industry with high costs and thin margins. Delta had a 7.6% pretax margin last year, United had 7.3%, while American's was 2.1%, and the broader S&P 500 ′s was 12.8%, according to FactSet data. Airline executives are banking more than ever that consumers will continue to splurge on better travel experiences despite weaker-than-expected demand for lower-priced tickets like domestic coach this year. 'I think it's growing this much because the experience in economy is so bad,' said Robert Mann, who worked at several airlines and is president of aviation consulting firm R.W. Mann & Co. Airlines have been updating their cabins for years and they have become so elaborate that they have slowed down some aircraft deliveries because of supply chain snarls and bottlenecks in regulators' certification. American is using the new suites in a combined, larger business-class for international travel, and getting rid of its first class, for the most part. By many measures, though, including space and amenities, the service is higher end than many 'first class' cabins of the past. 'Really, business [class] is starting to become so similar it was hard to really differentiate, and we want to make sure we offer as many business-class seats as we can,' said Heather Garboden, American's chief customer officer. The name matters. 'A lot of corporations will not permit the purchase of first class, but they will permit business class,' said Mann. Airline executives have been confident about their push to invest billions in the more luxurious cabins, brushing off signs of a possible economic downturn. 'We're at a really uncertain economic time right now and premium demand has remained solid,' Garboden said. Wealthier people 'tend to do OK even in a recession,' Mann noted. The number of premium seats is rising along with the experience. American said by the end of the decade it will increase its lie-flat seats and premium economy seating by 50%. The airline also recently said it will offer free satellite Wi-Fi to its loyalty program members, following Delta and United. United is also growing its cabin with its Boeing 787-9 Dreamliners outfitted with eight 'Polaris Studios,' in a 1-2-1 configuration and 56 Polaris business class suites. Currently, the planes only have 48 Polaris seats. It expects to have 30 Dreamliners with the new interior by 2027 but a first flight, between United's San Francisco hub and Singapore, is set for early 2026, the airline said earlier this month. Softer touches The carriers are also trying to raise the bar on the so-called 'soft product' like plush bedding and comforts like noise-cancelling headphones. American announced last month that it won't collect its Bang & Olufsen headphones from Flagship travelers before landing so they can keep watching movies and other entertainment longer. 'Polaris food and beverage offerings are being upgraded at the same time with enhanced meal choices on all new dishware, glassware and fresh white linens,' United's Nocella said. 'We've even added red pepper flakes in addition to salt and pepper so passengers can spice up their meals.' While the top-tier business class is offering higher tech and more high-touch service, the carriers don't have the over-the-top amenities of international airlines. United is planning an amuse bouche of Ossetra caviar for Polaris. Meanwhile, in first class in Emirates , which has larger aircraft with the Airbus A380, travelers have access to showers on board and 'unlimited' caviar service. For some, good service is simpler. 'I could be sitting up front or I can be sitting in the back but if the plane's late, the plane's late,' Mann said.
CNBC
5 days ago
- Business
- CNBC
Caviar and privacy: Airlines' business-class wars are here
DALLAS — Armed with dollops of caviar and handfuls of Bang & Olufsen headphones, U.S. airlines are duking it out for international business-class dominance. There are even differences between seats in the same cabin. Next week, American Airlines plans to start flying its upgraded business-class "suites" that feature today's premium-class must-have — a sliding door — and other features like a "trinket tray" and a wireless charging pad. Within the cabins on its subset of Boeing Dreamliners, which American is calling the 787-9P (the P stands for premium), there will be eight "Preferred" suites that the airline says will have 42% more "living area." They'll be first come, first serve with no upcharge, at least for now. United Airlines is hoping to outdo its rivals by putting doors on its Polaris long-haul business class seats; creating a new option at the front of the cabin called "Polaris Studio," which has an ottoman (for a visitor); and installing 27-inch 4K screens. The studios are 25% larger than regular suites, United says. It hasn't yet said how much more it will charge for the studios over the standard suites. Having an even-higher tier of seats within long-haul top-tier classes has been catching on. Virgin Atlantic has the "Retreat Suite" at the front of Upper Class on its Airbus A330s and Lufthansa is offering a two-person suite in its new Allegris first class that can be converted into a double bed. Etihad has a three-room option called "The Residence" on Airbus A380s, which can cost $20,000 or more for a one-way ticket between New York and Abu Dhabi, though the airline varies how it uses those jets. "The experience here is a way to give not only our existing customers a wider range of products to pick from," Andrew Nocella, United's chief commercial officer, told reporters earlier this month. "We just didn't have something better, and now we do." American and United took a page from Delta Air Lines, the most profitable U.S. carrier, which already offers suites with sliding doors in its Delta One cabin. The Atlanta-based carrier, in turn, last year opened a dedicated lounge for the highest-tier customers, a move American and United had already made. Business-class tickets are costly for many consumers. A ticket aboard American's new suite, leaving Aug. 8 and returning a week later, is going for $5,747 from Philadelphia to London, compared with $867 in standard coach. Getting more customers to pay up for pricier seats is key for an industry with high costs and thin margins. Delta had a 7.6% pretax margin last year, United had 7.3%, while American's was 2.1%, and the broader S&P 500's was 12.8%, according to FactSet data. Airline executives are banking more than ever that consumers will continue to splurge on better travel experiences despite weaker-than-expected demand for lower-priced tickets like domestic coach this year. "I think it's growing this much because the experience in economy is so bad," said Robert Mann, who worked at several airlines and is president of aviation consulting firm R.W. Mann & Co. Airlines have been updating their cabins for years and they have become so elaborate that they have slowed down some aircraft deliveries because of supply chain snarls and bottlenecks in regulators' certification. American is using the new suites in a combined, larger business-class for international travel, and getting rid of its first class, for the most part. By many measures, though, including space and amenities, the service is higher end than many "first class" cabins of the past. "Really, business [class] is starting to become so similar it was hard to really differentiate, and we want to make sure we offer as many business-class seats as we can," said Heather Garboden, American's chief customer officer. The name matters. "A lot of corporations will not permit the purchase of first class, but they will permit business class," said Mann. Airline executives have been confident about their push to invest billions in the more luxurious cabins, brushing off signs of a possible economic downturn. "We're at a really uncertain economic time right now and premium demand has remained solid," Garboden said. Wealthier people "tend to do OK even in a recession," Mann noted. The number of premium seats is rising along with the experience. American said by the end of the decade it will increase its lie-flat seats and premium economy seating by 50%. The airline also recently said it will offer free satellite Wi-Fi to its loyalty program members, following Delta and United. United is also growing its cabin with its Boeing 787-9 Dreamliners outfitted with eight "Polaris Studios," in a 1-2-1 configuration and 56 Polaris business class suites. Currently, the planes only have 48 Polaris seats. It expects to have 30 Dreamliners with the new interior by 2027 but a first flight, between United's San Francisco hub and Singapore, is set for early 2026, the airline said earlier this month. The carriers are also trying to raise the bar on the so-called "soft product" like plush bedding and comforts like noise-cancelling headphones. American announced last month that it won't collect its Bang & Olufsen headphones from Flagship travelers before landing so they can keep watching movies and other entertainment longer. "Polaris food and beverage offerings are being upgraded at the same time with enhanced meal choices on all new dishware, glassware and fresh white linens," United's Nocella said. "We've even added red pepper flakes in addition to salt and pepper so passengers can spice up their meals." While the top-tier business class is offering higher tech and more high-touch service, the carriers don't have the over-the-top amenities of international airlines. United is planning an amuse bouche of Ossetra caviar for Polaris. Meanwhile, in first class in Emirates , which has larger aircraft with the Airbus A380, travelers have access to showers on board and "unlimited" caviar service. For some, good service is simpler. "I could be sitting up front or I can be sitting in the back but if the plane's late, the plane's late," Mann said.
Daily Mirror
14-05-2025
- Business
- Daily Mirror
Top airline to start offering caviar and Champagne in £112 million meal plan
United Airlines is investing $150 million into its food and drinks menu, introducing a new caviar and champagne pairing for passengers travelling in business class United Airlines is splashing out a whopping $150 million (£112 million) on revamping its menu, with business class passengers soon to be treated to caviar and Champagne pairings. The airline - which is the largest in the world by a number of metrics - is overhauling its Polaris Suites for high-end business class travellers, introducing meal options that include an amuse-bouche of Ossetra caviar coupled with Champagne Laurent-Perrier Cuvée Rosé. In response to less-than-stellar customer ratings during the Covid pandemic, United Airlines has already unveiled additional meal choices. Passengers will soon have the option of beef, chicken, or vegetarian meals - but there's even more in store as they roll out their refurbished Boeing 787-9s. The revamped interior will feature a new grab-and-go snack bar exclusively for United Polaris business class customers, stocked with goodies from brands such as Garretts, Community, and Joe and Seph's. The airline also plans to introduce mid-flight meal options with a regionally inspired tapas service. Economy passengers aren't being left out either, with new snack options set to be available throughout the aircraft. The company is broadening its dining offerings with three main course options, new desserts, including cheese and olives, and an appetiser course, reports the Mirror US. International economy passengers can look forward to fresh salads with premium dressings, an expanded range of main courses, new desserts, and an appetiser served ahead of the full meal. United has announced a total revamp of its tableware – we're talking fresh dish designs, sparkling glassware, top-notch cutlery, plush linens, and even an upgraded spice rack featuring red pepper flakes. "To build the biggest of the best you have to continue to innovate, you have to continue to change, you have to continue to push boundaries," Andrew Nocella, United's Executive Vice President and Chief Commercial Officer explained. For those who've flown United Polaris and encountered the beloved sundae cart, prepare for your sweet tooth to be thrilled anew. For a brief period, Polaris passengers will indulge in featured Tillamook ice cream with ever-changing toppings through the seasons, including a debut chocolate-hazelnut fusion treat. Moreover, new Polaris booths will showcase rotating regional menu delights each month, boasting fresh breakfast offerings, bottled salad dressings, revamped snack baskets mid-flight, and the introduction of an Aperol Spritz, complete with a zesty orange slice, to the beverage lineup. The press unit at United Airlines reports that these enhancements are already a hit: "United's investments in its food and beverage program are paying off: customer satisfaction scores were up 12% in the first quarter of 2025 compared to last year. The team remains focused on creating high-quality onboard dining experiences with signature touches across all cabins."
CBS News
13-05-2025
- Business
- CBS News
United Airlines unveils Polaris Studio suites for premium travelers. See inside the cabin.
United Airlines is adding some extra bells and whistles to its new Boeing fleet. The Chicago-based company announced that its Boeing 787-9 planes will offer a larger selection of premium seats as well as new suites, dubbed "United Polaris Studio." Positioned at the front of the business class section, the Polaris Studio suites will include a host of luxury amenities for travelers who are willing to dish out more money for the premium experience. Among the offerings are skincare kits, flatbed seating with ottomans, champagne service, and exclusive dining options including "curated food and drinks," according to the United website. Also included are wireless charging, Bluetooth connectivity and 27-inch screens. United Polaris Studio seats will also be 25% larger than standard United Polaris seats and come with privacy doors, the airline said. "We're planning to fly this aircraft to Singapore, but there's 140 of these aircraft on order that are all gooing to come with this amazing suite on board," United Chief Commercial Officer Andrew Nocella said. United hasn't disclosed the cost of the enhanced seating. "We've created a everything around it to make sure that we can deliver it reliably and we can deliver it for a price that I think consumers will be excited to pay," Nocella added. The Polaris Studio suites will include a host of luxury amenities for travelers willing to dish out more money for the premium experience. United Airlines United posted its best quarterly performance in five years earlier this year, raking in $13.2 billion in first-quarter revenue. Standard United Polaris seats — the tier below the new studio suites — will also see some upgrades, including 19-inch screens and sliding doors. United Polaris Studio seats will be 25% larger than standard United Polaris seats and come with privacy doors, the airline said. Kris Van Cleave The Boeing 787-9 aircraft will have 99 premium seats total, the most of any in United's fleet and the highest percentage among U.S. carriers, according to the airline. That number includes seating in eight United Polaris Studio and 56 United Polaris business class suites. This nose-to-tail transformation comes as the luxury travel sector continues to expand. Demand for luxury tourism and hospitality is expected to grow faster than any other travel segment, according to a 2024 McKinsey & Company report. This rendering shows the Boeing 787-9's new interior, which will have 99 premium seats total, according to United Airlines. United Airlines The first international flights planned for the new Boeing aircraft will take off from San Francisco and travel to Singapore and London in 2026. "All of United's future 787 deliveries will get United Polaris Studio suites and Elevated interiors, and the airline expects about 30 of these planes to join its fleet by 2027," the company said in a statement. The airline industry has been under increased scrutiny in recent months after an American Airlines flight collided with an Army helicopter over the Potomac River in February, killing everyone aboard both planes. Newark Airport, which has hundreds of departures each day, has also made headlines in recent weeks after multiple air traffic control outages disrupted travel. United Airlines limited flights to and from the New Jersey airport amid the problems.
CNBC
13-05-2025
- Business
- CNBC
United Airlines exec says it may not get Boeing 737 MAX 10s until 2027 or '28
United Airlines may not take delivery of the Boeing 737 MAX 10 until 2027 or 2028 because of uncertainty about when the plane will be approved for use, an executive for the carrier said Tuesday. Boeing has faced significant delays in getting the smaller MAX 7 certified, which must happen before the U.S. Federal Aviation Administration can then certify the larger MAX 10. United Chief Commercial Officer Andrew Nocella told reporters on the sidelines of an event that the airline is taking MAX 9 airplanes as it waits for the certification of the 10. "In supply chain terms, we want to make sure we get our aircraft so we've committed to the MAX 9," Nocella said. "Until we know the MAX 10 is going to be delivered, we don't want to have an aircraft that doesn't arrive." Nocella said United may not achieve its earlier goal of being one of the first delivery customers for the MAX 10. "We want to see the aircraft certified before we make the firm commitment to convert our 9s to 10s." Boeing did not immediately comment. In 2017, United made a major order of the MAX 10, which is larger and can carry more passengers. The 737 is Boeing's top-selling airliner. The FAA has currently capped production of the MAX at 38 planes per month after a 2024 mid-air emergency. The FAA must approve an engine de-icing fix for the MAX 7 before it can certify the plane after Boeing in January 2024 withdrew a waiver request. Alaska Airlines told Reuters last year it did not expect to receive 737 MAX 10 airplanes until at least mid-2026. Nocella said there is no end in sight to supply chain issues on engines and other parts. The new 787-9 with updated interior "should have been announced six months ago" but for supply chain problems, he said, adding: "I don't have a crystal ball, I can't tell you when it's going to be fixed."
