3. GA First Class: Status Quo
• When: 9 July 2013
• Route(s): Jakarta – Jeddah vv and Sydney – Jakarta –
London (prospective route)
• Seat(s): 8 passengers on B777-300ER fleet
• Fare: USD 8,000
• Load factor: 25%
• Seat revenue: for every 10% load -> 30% total revenue
• Services: exclusive booking line, immigration on board,
exclusive shuttle, PA in airport
4. Weaknesses
• High cost to maintain exclusive service for first class
cabin
• Low load factor which impact to seat revenue
• Current service excellence hasn’t get any award
recognition which impact to branding.
5. Premium Traveler Trends
• International market: passenger travelling with
premium class increase 2% this year (IATA, May
2013)
• The world’s high net worth individuals are increasing
in number. US, Japan and Germany are home to over
half the total, but China, Brazil and India are
increasing their share. (World Travel Market
London, Nov 2012)
6. Competing with Competitors
• Etihad Airways has been holding service excellence
recognition for their first class cabin. (Skytrax Award
2013)
• ANA and SQ is the main competitor in Asia-Pacific
market for this segment. (Skytrax Award 2013)
7. Key Points
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Finding the right customer
Finding favorite destination of the high-end customer
Increase high level of comfort and exclusivity service both
in-flight and ground (ex: exclusive wine and dine experience
with celebrity chef or sommelier, exclusive lounge and
airport hotel)
Luxurious brand engagement for gaining high-end customer
loyalty (ex: branded amenities, high-end magazine)
Maximize impact of airline alliance, exclusive car rent, and
hotel chain alliance for one-stop exclusive service (ex: one
stop booking service from home pick up to
airport, accommodation, vice versa)
Partnership with prospective company to gain customer.
8. Emerging Market: China
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Chinese consumers are driving growth in luxury goods sales
worldwide, with travel an essential component of a luxury
lifestyle. (World Travel Market London, Nov 2012)
On average, wealthy Chinese take 3 international trips a
year, with 33% of billionaires taking more than five annual
international trips. (World Travel Market London, Nov 2012)
Significant increasing of tourists from China to Indonesia in
the amount of 22% in 2012. (Liputan6.com, Nov 2013)
Chinese airlines/competitors (China Southern, Cathay, China
Airlines) don’t focus on first class service -> potential
market.
Prospective route(s): Jakarta – Shanghai vv or Bali – Beijing
vv