We will see American Airlines eliminate its premium first class class with the introduction of its new business class product. I can't help but think of the implications of this change for the company's employees.
Free or heavily discounted travel is one of the perks of working in the airline industry. Employees at the big three US airlines are given the best seats on a space available basis.
When travelling on a space available basis, airline employees are assigned seats after all revenue customers. They are filling seats that are otherwise empty. Getting on a particular flight is not a sure bet, even if it is on the upgrade list.
If you want to travel domestically in the economy, the benefit is not worth much. Take a look at routes like Miami to Dallas or Dallas to Los Angeles, where every seat is usually taken, and you will see a long list of revenue customers. It is possible that airline employees don't clear for several flights in a row.
This benefit is most valuable in the first class. There is a proper first class on American's Boeing and Airbus aircraft. It is not uncommon to find a lot of empty premium seats on these planes because elite members aren't eligible for complimentary upgrades from business class to first class.
On routes like New York to Los Angeles, where there are only two people in first class, the cabin is almost always full. American employees have the best setup of the big three US carriers for these perks since American is the only one with a premium first class product.
With the introduction of a new business class and the elimination of first class at American Airlines, I can't help but think of how this will affect some employees.
First of all, American will be taking A321Ts off premium transcon routes and replacing them with planes that have premium economy and business class. The reduction in the ratio of premium seats will likely lead to a reduction in the number of elite seats.
I don't think employees will ever see the forward cabin on a premium transcon route again if this change goes through.
In the case of long haul routes, American had at least a few empty first class seats even on busy routes where it was difficult to upgrade to business class. There were some non-revs in first class.
Business class is the highest cabin and that will be a challenge when there is no first class cabins. Maybe it is not all bad news that American is increasing its capacity on some jets. I think employees will have no issues clearing into business class if the upgrade list isn't very long. It will be more difficult than before.
The new business class and the elimination of first class will affect American employees who like flying in premium cabins. These perks have been controversial, but I am happy for those employees who have been able to take advantage of them. People who work hard in the airline industry get a nice incentive to work hard. It would be a win-win if it made employees happy.
The generous travel benefits for employees are part of the reason airlines don't invest in premium cabins. Premium transcon routes are always available for 10 people in first class even if there are only a few paying passengers.
Premium cabins on foreign airlines are usually not as full as on US airlines, which is a nice thing.
The new business class product will be introduced by American Airlines in the year 2024. Premium first class will be eliminated. I don't think that's a huge loss since American didn't invest much in the soft product and hard product.
There is no denying that this affects many airline employees. It will become harder for airline employees to get premium seats on premium transcon routes because of travel benefits. I think there are some sad New York or Los Angeles based employees who don't like the change.
Do you think I see things in a certain way?
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