After having been launched and touted as a wholly low cost carrier, ABTN reports that Virgin Blue has finally conceded that there is money to be made at the premium end of the market. It has now launched premium economy on Australian domestic services flown by its Boeing 737 fleet. Apparently it will also be extended to its new Embraer 170 and 190 fleet as well.
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Premium economy involves priority checkin, lounge access, 32kg baggage allowance and fully flexible and refundable fares - in other words much like business class.
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On board the front three rows will have the middle seats blocked out so that the 3-3 configuration will be 2-2 with the middle seats able to be folded down to be used as an extra table. Seat pitch is to be increased to 34", similar to the best long haul economy class on airlines like Air NZ, Thai and Malaysian.
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It is notable that premium economy is NOT available on Virgin Blue's international counterpart - Pacific Blue as explained on the website description of the 737 seating.
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Good for Virgin Blue, and this clearly is some competition for Qantas for the high end corporate market. Virgin Blue can provide fully flexible fares cheaper than Qantas on domestic business class, but still offer more legroom and width than standard economy.
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Meanwhile, it is worth noting Qantas has upped its games on domestic Australian services, with new separate Business lounges adjacent to Qantas Club exclusively for business class travellers and top tier frequent flyers (Qantas Platinum, One World Emerald), with enhanced facilities. With short haul international style seats and full hot meal service, Qantas has the premium edge, but Virgin Blue may have a value advantage.
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