Calculating the Cost of a Better Airline Cabin for All


Skift Take

What would you pay for extra legroom? Seriously. Be Honest. Airlines are standing by to take your calls.
How much would it cost to get an extra inch of legroom and an extra degree of recline? https://twitter.com/AmelieAGagnon/status/681856821699678214 Good question. We couldn't write the math equation, let alone fit the answer in 140 characters. Even the controversial ten thousand character limit might not be enough, but we decided to try. First, let's look at the costs to airlines of that extra room. Show Me the Money Before we can understand the cost of space for airlines, we have to ask: Are they making the right kind of money on the space they have now? Even profitable airlines, could be flying unprofitable cabins. They make up the difference with ancillaries, extras, low fuel, consolidation, favorable labor contracts, efficient aircraft, strong network partnerships, and other ways. Basically, there is lots of padding. Think of that padded revenue as a delicious soufflé, which, when, a cold wind blows, becomes a sub-par pancake. Revenue buffers can change overnight. Cabins do not. Airlines are transport businesses. Like hotels, airlines are also in the real estate business. Except their real estate flies. To make money, every square foot of that real estate has to return the right kind of revenue. You've got to have the right product mix. Full-service airlines can make a quick buck with discounted Economy revenue to pump-up load factors, but the big money is in Premium real estate. Stable money is in a proper balance between the front and the back. Airlines face the added burden of regulated, high-cost products. Each element of airlines' "rooms" must be certified and approved. It's time consuming and expensive and once an aircraft's interior is finished it flies, while changes mean grounding aircraft. Nobody wants that. In aviation, hardware is forever—even if forever only lasts 10 years. If the market suddenly changes, getting the cabin mix wrong can be catastrophic and to win the long-game, you need to earn the h