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Why SIA's seats on its superjumbo-turned-restaurant sold out

Bloomberg10/19/2020 08:44 AM GMT+08  • 4 min read
Why SIA's seats on its superjumbo-turned-restaurant sold out
What motivates people to spend hundreds of dollars on this when they could go to a 5-star restaurant or hotel in town?
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When Singapore Airlines Ltd. said seats on its superjumbo-turned-restaurant sold out in 30 minutes, one common question was: “Who on Earth would want to do that?”

Plenty of people, it turns out. For every person who doesn’t relish flying, let alone schlepping to the airport and onto a parked plane for some reheated airline food, there’s another who can’t get enough of the aviation experience and is willing to shell out (big bucks) for it.

Singapore Airlines is opening up two of its Airbus SE A380s at Changi Airport as temporary restaurants for two weekends later this month, offering dishes from its menu, two complimentary alcoholic drinks and free flow of other beverages. A meal in a suite costs $642, while prices are $321 for a business-class seat, $96.30 for premium economy and $53.50 for economy.

  • The SIA A380 dining experience was something that surprised many. Why anybody would spend $50 for economy class to $600 for suites was mind-boggling for some. However, there are many aspects to looking at this.
  • The economy class price point wasn’t too bad at all considering you get to experience the A380, perhaps for the first time, and get a meal, drinks and inflight entertainment.
  • Some would say you can do all this at home with Netflix and a takeaway meal, but there is a sense of national pride and a patriotic aspect to support SIA given the headlines on its financial struggles.
  • For some, it would be like going to the movies with extra legroom (for those opting for premium economy) with value-added thrown in.
  • There are also novelty-seekers wanting to try business class or suites who may otherwise not be able to afford the premium cabin experience in the air.
  • Some are social media influencers or want Instagram moments from the splurge.

  • In addition to capturing new revenue streams, this is a publicity event to showcase the A380 flagship product to travelers.
  • The A380 economy class and other cabins were overhauled in the past few years, so it’s relatively new.
  • It allows people who may not have traveled on long haul flights to experience the new cabins.
  • The airline can then hook potential travelers with their service and product offerings once travel rebounds.
  • It isn’t expected to generate significant cash as there are food and beverage costs that need to be taken into account. Airlines typically allocate S$20 a meal for economy class, and there are related costs so the contribution isn’t significant. What they achieve is publicity.

  • Business class and suites have proved the most popular for those that could afford it, but premium economy got the same level of attention given the price point.

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