Qantas and Air France in downgrade battle

The Air France-KLM is ridding many of its planes of cattle-class seating and Qantas Airways Ltd has decided to scrap its sheep-skin mattress first-class section as both airlines look to reconfigure their aircraft to accommodate downgraded business travellers.

The moves come as a direct result of the massive slump in both business and first-class travel last year, which resulted in $85 billion being wiped from sales and created a new type of passenger class who no longer can justify the exorbitant costs of first-class travel compared to economy.

The result is that Air France-KLM and Qantas will now offer premium-economy travel, while fellow airline Air New Zealand has been hailed for its innovative Skycouch in economy class.

Industry experts have predicted that the moves are just the beginning of what could develop into an all-out-war between carriers, with the lessening of the gap between business and economy class forecasted to continue as cost drives ticket purchases.

According to an International Air Transport Association (IATA) report released last week, last year’s slump effectively erased six years of industry growth. The group did acknowledge that seat classes have changed significantly but that business travel is still down by 17 percent against pre-recession levels, while economy travel is nearing a return to normalcy.

Qantas will spend some $366 million on revamping 17 separate aircraft, removing first-class cabins. Business class will be reduced on a further 12 planes to make room for coach and premium economy. Air France-KLM, the largest European carrier, will re-fit most long-haul planes with the 40 percent larger-than-coach premium economy seats.