Air New Zealand Bets on Economy Bunk Beds to Boost Passenger Comfort
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Original Article Paraphrased and Abbreviated by APEX Staff with Permission
Air New Zealand is set to roll out Skynest, a bold new economy class feature offering lie-flat bunk beds on ultra-long-haul flights. The bunk-style pods will debut on two Boeing 787-9 Dreamliners, with the Auckland to New York route scheduled as the first to showcase the product.
Skynest consists of six sleeping pods available for four-hour reservations in addition to a standard economy seat. While the concept has sparked international interest, the airline is clear about its expectations. Chief Transformation and Alliances Officer Michael Williams told The Airline Observer that the product may only break even financially.
“You can easily see how you can get to break-even,” Williams said. “That’s probably about what we could do from a pure commercial lens.”
To accommodate the Skynest, five economy seats have been removed. Pricing has not been finalized, but the airline has floated a range of NZ$400 to NZ$600 (approximately USD $239 to $359) per session. Williams said the team is still analyzing how to balance cost recovery with what passengers are willing to pay.
“We’re still working through it,” he said. “And like so many things when it comes to air travel, a big part of it is what people are prepared to pay.”
More than profit, Air New Zealand views Skynest as a brand-building tool. It follows the airline’s earlier economy innovation, Skycouch, which converts three economy seats into a flat surface for one or two passengers. That product, Williams noted, has been profitable and helped build Air New Zealand’s reputation for customer-focused design.
“These features of innovation provide some attention to the airline,” Williams said. “And as a result, people think, hey, ‘I wouldn’t mind traveling to New Zealand.’”
The Skynest will initially be installed on just two aircraft. Williams described this as a deliberate test-and-learn phase. If the product proves unpopular or underperforms, it can be removed.
“We’re going to take this onto two aircraft and see how it works,” he said. “Innovate, push test, experiment, get customer feedback, and then adopt.”
Some observers question whether Skynest could compete with premium economy. Williams said the offerings are distinct. Skynest users still receive economy food and service, while premium economy includes upgraded meals, amenities, and more consistent comfort throughout the flight.
“They’re still quite different propositions,” he explained.
For the full 2,475-word original story by Brian Sumers, please read Why Air New Zealand’s Bunk Beds Can’t Fail on The Airline Observer.