CHICAGO -- United is creating a premium transcontinental service
for all flights linking New York with Los Angeles and San
Francisco.
The airlines new service caters to high-end customers, who
account for more than half of its revenue on those routes.
United is reconfiguring 16 757 aircraft with more spacious
seating and upgraded service. There will be 12 seats in first class
that recline to 172 degrees and 26 in business, all of them
leather. There will be 72 seats in Economy Plus, Uniteds coach
cabin with more leg room.
United is upgrading the meal service in every cabin; providing
inflight DVD players in first and business; and equipping every
first and business seat (plus two of every three economy seats)
with laptop power ports.
And everybody will get a hot towel.
United is calling the product "p.s.," as in "premium service."
It will be phased in, debuting on an Oct. 18 New York-Los Angeles
flight and on all New York-L.A. flights by years end. The New
York-San Francisco phase-in period is from December to late
February.
United will begin accepting bookings for the new product Aug. 3.
How to tell which flights have it? Look for flights using 757
aircraft.
United is introducing the product at a time when the
transcontinental market has been flooded with capacity. Even
low-cost carriers complain of market saturation that is forcing
fares to drop too low.
"Its not possible to have a cost structure low enough to make
money in those markets right now," an America West executive said.
American said its transcontinental yields in the second quarter
were 19% lower than a year ago.
A United spokeswoman said the new product will be "priced
competitively," but it seems clear United is trying to increase
yield. Part of its reasoning for the new product is that premium
cabins already account for more than half of Uniteds revenue on the
two routes, the spokeswoman said.
To contact reporter Andrew Compart, send e-mail to
[email protected].