‘Indians are willing to pay a premium for their families’

As Singapore Airlines gets ready to launch its premium economy cabin on the Delhi-Singapore route with the Airbus A-380 on October 25,

David Lau, General Manager India, explains to Ashwini Phadnis the reasoning behind, and the response to, this new product.

Why premium economy on Indian flights?

Indian families are normally quite large. Husband, wife, children and grandparents travel, particularly during the festival season. We find that there have been requests where they want to surprise the elders in terms of paying additional so that they can travel in a higher cabin class — meaning the premium economy class — so that they can travel in more comfort and they have better meal choices. It is interesting for us to see an average Indian person, an average Indian family taking so much pride and having so much respect for their elders that they are willing to pay premium for them.

Where is the demand coming from?

It is a mix. Predominantly, we are looking at Mumbai, Delhi and up north. But we also notice it from Bengaluru and South India. We have travellers who actually fly from Bengaluru to Mumbai or Delhi to connect to the A-380 to Singapore and beyond.

How big is the market?

We are confident that at this point in time the economy class cabin is quite full particularly in peak season. There are travellers who in peak season find that airfares are a bit pricier in economy class so they want to look for a small fare difference and say ‘I might as well travel premium economy particularly during Diwali, year-end or Christmas’.

Then there is also a segment which wants to make sure that it can avail itself of the additional benefits of travelling. Corporate traffic will fly in business class anyway. It is unlikely and nor do we want to attract those business-class passengers to downgrade to premium economy.

Elderly travellers or honeymoon travellers or people who just want to pamper themselves or people who want to travel in peak season and want to make sure their travel is hassle free upgrade themselves to premium economy travel.

Can you give some kind of idea of the difference in fares between maximum economy and minimum premium economy?

If you look at the highest economy class airfare that is normally called full Y class and the starting level in premium economy the P level class, the difference between the highest economy class fares and lowest premium economy class fares is within the range of 10 per cent.

But if you look at the lowest economy class fare and lowest premium economy class fare, you are looking at a difference of 50 per cent. It ranges from 10 to 50 per cent. During the peak season like Diwali or year-end the difference is so little that people may say they might as well fly premium economy.

Why premium economy only on night flights?

We noticed that during day flights people do not really sleep. They might dose. So they may not fully enjoy or aspire for the benefits of premium economy class. The premium economy seat has an 8-inch recline as compared to very little in economy. We are talking about full leather as against fabric. It is like sitting on your favourite couch chair at home.

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