If you’re traveling today (at prices way higher in the U.S. than in Europe) on a jam-packed pre-holiday commercial flight, perhaps you’ll appreciate this business idea…
The Hainan Boston to Shanghai flight that I took was two-thirds full. The result was that the B787 loaded and unloaded faster than a full B737 or A320. Almost everyone enjoyed an adjacent empty seat.
Is there is a business idea here? Start an airline called “Two Thirds” with Hainan-style reasonable legroom and a guaranteed empty middle seat (exception: a family group of three that actually wants to use the whole row). Charge 50% more per seat (still a great deal compared to business class, which can be 3-7X the price due to the low density of seating). By paying 1.5X the lowest possible fare, the customer is guaranteed not to sit next to a morbidly obese person, overflowing into one’s space. At fares that are 1.5X what is currently charged, I think an airline could make superior profits. Airplanes will turn around faster at airports, so capital asset utilization will be better. Some flights wouldn’t have had more than two thirds occupancy anyway, so the aggregate revenue from a flight would be higher than the average revenue from an airline pursuing the minimum cost, maximum discomfort/crowding strategy.
Readers: Since nobody has tried this, I am going to assume that it is a bad business idea. But why?
- the Europeans do this already just by calling coach with an empty middle seat “business class”; they’ve proven that people will pay extra for this service, but it isn’t directly comparable since the back of the plane may be jammed and therefore take a long time to load and unload