Kiwis are well used to the dread of checking in for a long haul flight, economy class, and hoping the plane will be undersold so there is a prospect that extra space can be scored. Now the clever clogs at Air NZ have found a way to turn any spare space into revenue. Like many good ideas, its obvious once you hear it: offer a guaranteed extra adjacent seat for a heavily discounted price. This is a perfect way to get cash for highly perishable inventory (unsold seats) just before it expires (at takeoff).
But there may be more to it. The SMH is reporting speculation that Air NZ has devised a cabin fitout that would allow two economy class seats to convert into something resembling a those wonderful lie-flat beds they have in business class.
Because this is a world first, the idea also has the potential to earn millions of dollars for Air New Zealand in export revenue. Its aircraft interior design subsidiary Altitude Aerospace Interiors, set up last year, plans to sell its economy seat-bed design to other airlines.
I’m pretty sure United were already doing this in the US on domestic flights. there was a big discussion about it on one of the blogs. in particular that the person who gets the empty seat next to them are the people who value it the most leading to a more effecient market.
though the bed idea in economy would likely be a world first, and again would lead to better market outcomes