What is a Premium Airline? Insights from Aviation Executives

The Concept of Premium Airlines

In the aviation industry, many marketing terms may lack real substance, but understanding them is still worth the effort. Recently, airline executives in the U.S. have been keen on positioning their brands as 'premium.'

Delta has certainly been the most vocal about this concept lately. However, United's CEO, Scott Kirby, has also made it a buzzword, emphasizing that there are only two premium airlines in the U.S.: Delta and United, implying that American Airlines has fallen behind.

Defining Premium in Aviation

But what does it really mean for an airline to be 'premium'? In the dictionary, 'premium' is defined as 'something of exceptionally high quality.' Yet, when compared to top global airlines like All Nippon Airways, Emirates, or Singapore Airlines, it’s hard to argue that U.S. airlines are genuinely premium.

On domestic flights with U.S. carriers, passengers often find themselves without complimentary meals on long-haul flights and must pay extra for alcoholic beverages. In contrast, on a similar flight with Singapore Airlines, passengers enjoy a full meal, free wine, and exceptional service.

Comparing U.S. Airlines with International Carriers

The differences become even more pronounced when comparing domestic business or first-class seats on U.S. airlines to those of renowned international carriers. Most U.S. airlines, except for American Airlines, do not offer international first-class, which is the highest level of luxury available in commercial aviation.

The head of United seems to believe that a premium airline must cultivate customer loyalty. In other words, he wants people to choose United not because it’s the cheapest option but because it offers a distinctive experience. However, does this really enhance the experience compared to competitors?

Do Premium Airlines Truly Offer Value?

If a brand is considered premium based on customer loyalty, then Southwest Airlines could also be classified as a premium airline. This airline has excelled at transforming flights into a superior experience, making passengers willing to book tickets even if they aren't the cheapest choice.

Other brands, like McDonald's or Walmart, also boast a large base of loyal customers. Does that make them premium brands? U.S. airline executives love to tout their companies as 'premium,' but when compared to global flight experiences, it’s hard to confirm that.

Final Thoughts

If an airline genuinely provides an outstanding passenger experience, it should be regarded as premium. However, it seems that some airline executives define premium in terms of customer loyalty, and in that case, Delta and United are not alone. Is premium merely a label for airlines that profit from loyalty programs?

Let’s discuss whether these claims are genuinely substantiated or just empty words from airline executives.

Article adapted from: One Mile at a Time