Budget luxury takes off

WITH business class airfares as high as $16,000 for international flights, the prospect of paying less than $1000 for a lie-flat bed to Bangkok or Bali seems too good to be true.

Yet that’s what low-cost carriers are charging for their premium seats, which generally come with a meal, luggage allowance, no queues for the toilet and room to stretch out.

By year-end Australia will have four low-cost carriers offering a premium option operating to destinations including Honolulu, Bangkok, Bali,

Singapore, Tokyo and Kuala Lumpur.

Jetstar has the largest flight network out of Australia, with each of the carrier’s Boeing 787-8s fitted with 21 business seats in a 2-3-2 format.

Scoot also uses 787-8s on flights from Gold Coast, Melbourne, Sydney and Perth to Singapore, offering 18 or 21 “Scoot Plus” seats per flight.

Airasia X and Thai Airasia X have almost identical offerings on their A330-300 aircraft, with both featuring 12 lieflat bed seats in a 2-2-2 configuration.

The Kuala Lumpur-based

Airasia X will resume flights from Sydney on September 9 and then from Perth and Melbourne in November, while the airline group’s Thai subsidiary will start flying from Melbourne and Sydney to Bangkok in December.

On both Airasia X airlines, sale fares for business seats started from $599 one way on flights up to 10 hours duration.

Scoot Plus fares were about $750 for Gold Coast-singapore, and Jetstar offered seats in its business cabin for under $1000 to Bali.

CAPA Centre for Aviation emeritus chairman Peter Harbison said the option of business class on budget carriers was almost exclusive to the Asia Pacific region.

“There tends to be more scope for creativity and innovation in a fast-growing market, plus this is the only part of the world where you’ve got low-cost carriers operating long-haul flights,” Mr Harbison said.

“At the moment, with airfares climbing sharply and business travel still a long way off pre-covid levels, this sort of modest business class becomes really powerful.

“The low-cost carriers are in a much better position to deliver business-friendly products at a lower business cost.”

Jetstar was believed to have pioneered the budget business cabin, adding premium seats to A330s operating its first longhaul international flights to Bangkok in 2006.

Thai Airasia X CEO Tassapon Bijleveld said the slow return of some international airlines had created an irresistible opportunity.

“Before Covid we flew from Brisbane because we couldn’t get a good slot in Melbourne or Sydney,” Mr Tassapon said.

“Now there are not that many airlines flying so we can have a good slot.”

With only 12 lie-flat beds available on each flight, Mr Tassapon said they tended to be booked out within a few days of going on sale.

He said they were not in the same league as business seats on full-service airlines, but with prices similar to economy fares on other carriers, they represented great value for money.

“We don’t have any entertainment, we don’t have a lot of luxury on board but we get all the costs down so people can fly more,” Mr Tassapon said.