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Newest products continue to blur first, business class.

Publication: Business Travel News
Publication Date: 27-OCT-03
Format: Online - approximately 1220 words
Delivery: Immediate Online Access

Article Excerpt
Air France, Lufthansa German Airlines and Qantas Airways in recent weeks each detailed their new first or business class products and joined Northwest Airlines and Virgin Atlantic Airways in an intensifying battle for higher-yielding travelers on transoceanic routes. The new products, which center on more comfortable services and amenities, are the latest offerings to blur the line between traditional first and business class (BTN, Aug. 11).

The investment in premium products comes amid depressed business travel demand and indicators that appetite for such products will wane further next year. These airlines, however, are eyeing a gradual recovery in overall corporate travel and are positioning their refreshed premium cabins as a means to keep or steal as many accounts as possible.

Such pampering certainly gets the traveler's attention, but many travel managers are not likely to loosen corporate travel policies that restrict first and business class bookings.

"It is going to be really hard for airlines to fill their new premium products," said Yasuo Sonoda, travel manager at Macromedia in San Francisco. The company's international business class bookings fell 80 percent in the...

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