Flyers' fantasy realised: bed for $150

Fairfax Media

GREAT IDEA: Air NZ revealed last week plans to offer passengers unsold seats when they check in at the airport for conversion to a near-flat bed.

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Imagine if instead of just praying for an empty seat next to you in economy long haul, you could guarantee it.

Take that dream further and configure your two economy seats so it's possible to lie down and sleep.

This could be a reality in April next year, said Air New Zealand. The airline last week revealed plans to offer passengers unsold seats when they check in at the airport for conversion to a near-flat bed.

The company hasn't said what it might charge passengers for the extra seat. But based on a "reasonable charge'' of $150, aviation analyst Marcus Curley said the move had the potential to earn the carrier $60 million of extra revenue each year.

Curley, head of research at Goldman Sachs JB Were, said the airline's management was coy about revealing too much before a relaunch of its aircraft interiors ahead of the first arrival of one of several Boeing 777-300ER planes at the end of next year. But he said he believed the seat arrangement would involve a system where both seats could slide forward and the seat rest would come up so the foot room disappeared and the passenger could spread out across both seats.

Unlike the herringbone design used in business class, where the seats fold down flat, the economy class "beds'' would still have a slight pitch.

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 in 2008, plans to sell its new turn-into-a-bed economy seat design to other airlines.

Analysts were given only vague details of the new seating plans at an Air New Zealand investor briefing last week, but what is likely to happen is that passengers will be given the option of buying the extra seat when they check in at the airport.

Curley said the near-flat sleeping experience in economy class would dramatically improve Air New Zealand's ability to sell spare seats. And at $150 a seat, ''a reasonable asking price if it means you can stretch out'', the company would lift long-haul yields by 4 per cent a year, based on the latest loading statistics across all long-haul routes, he said.

Curley did not believe the move would cannibalise the lie-flat business class seats, because business travellers wanted to be sure they could get a flat seat when they were flying and wouldn't take the risk of waiting until they arrived at the airport to see whether spare seats were available in economy class.

The new-design economy seats are part of a more extensive interior redesign being carried out by Altitude Aeropsace Interiors. It includes a revamp of premium economy seats, entertainment seats and cabin configurations.

Air New Zealand's last overhaul of its long-haul product, carried out between 2005 and 2006, focused on the lie-flat business class seats.

Craigs Investment Partners analyst Geoff Zame said in his report on last week's investor day that Air New Zealand had realised the  importance of seats on its long-haul aircraft, given the long, skinny routes it flew.

He said the average long-haul sector length was 90 minutes longer than that of other airlines, and  there were substantial yield benefits for the carrier when it introduced the business class seats in 2006 and 2007.

At the time of writing, Air New Zealand international group general manager Ed Sims was not available for comment about the new seats he mentioned at his presentation last week.

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Anna   #33   01:33 pm Oct 23 2009

A great idea. If I was flying non stop to London I'd definitely take it up. Re Jackie's comment - if you've travelled recently long haul on AirNZ you'll see that the seat arm rest does not lift enough to allow you to lie across the seat next to you so alas not free on AirNZ.

ab   #32   01:28 pm Oct 23 2009

I think I would just take the risk and hope that no-one was next to me and then I would lie for free.

Karen   #31   01:10 pm Oct 23 2009

I think you'll find the alteraions to the seat movement mechanism means you won't be able to use to the spare seat next to you anymore without having the aircraft crew arrange it for you, and therefore having it pre-arranged and pre-paid at check in. It would only be worthwhile for the real long-haul flights, NZ-LA or London etc, I'd be more than willing to part with $150 for a more comfortable sleep for those flights.

WB   #30   01:02 pm Oct 23 2009

So if there are some free seats near you, and you lie down, will you be told to pay up – or else you must stay sitting upright in your designated seat? Like many people I’m always moving to empty rows whenever I can to stretch out, is this the end unless you come up with $$$

Eric Chin   #29   12:57 pm Oct 23 2009

Koru club members, and high value frequent fliers would likely get first dibs anyway......

exeman   #28   12:54 pm Oct 23 2009

This is very welcome proposal to created for economy class in long haul flight.

andy   #27   12:45 pm Oct 23 2009

Your an idiot jackie

I think its a great idea, it gives air nz a competitive edge in a highly competitive industry which is facing difficult times. Its thinking like this that will allow air NZ to survive and make profit, while other airlines like British Airways are struggling to pay their staff.

mark raldon   #26   12:38 pm Oct 23 2009

Yes but these extra seats will allow personality (prob only funny if you seen latest international adverts)

Fred   #25   12:35 pm Oct 23 2009

This would also encourage people to check in early in case there were spaces available...

Simon   #24   12:33 pm Oct 23 2009

This would reduce the comfort of the flight for those of who dont choose to pay for the upgrade - I imagine that the typical amount of empty seats would get clumped together to suit those who get the upgrade and thus leave everyone else packed in tightly elsewhere with far fewer gaps.

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