First-Class Flight Or Folly?

Will the price be good enough to lure travelers away from other carriers? American Airlines, the world's largest carrier, learned the hard way that passengers often prefer to save a few more dollars than gain a few inches in legroom. The airline had pulled seats from more than 700 planes over the past few years and launched a massive ad campaign distinguishing itself as the carrier with more legroom. But last week, American--which had been teetering near the brink of bankruptcy in recent months--announced that it will add back seats in 174 aircraft, or nearly a quarter of its total fleet, and offer lower fares instead. Chief executive Gerard Arpey said the decision was made after customers in some markets made it clear "that price is predominately how they choose a carrier"--not legroom.

That may not bode well for Primaris. "Their plan goes against the grain of what people want. People consistently go with the airline that gives them frequent-flier miles and maybe less comfort but a better price," says Mo Garfinkle, president and chief executive of GCW Consulting, an international aviation consulting firm.

While it is based in Las Vegas, Primaris won't fly there--at least, not initially. After the airline receives government approval, a process that began in March but could still take several more weeks, it plans to start with nonstop first-class flights between popular business destinations like Los Angeles, San Francisco, Boston, New York, and Washington, D.C., as well as major European cities such as London, Paris and Frankfurt. The airline could launch with three aircraft as early as late summer or early fall, then add a dozen more airplanes within the first year. For Primaris to succeed, though, its plan--as well as its planes--will need to fly with passengers.

© 2003