Why First-Class Seats are Holding Up New Airplanes

A Lufthansa First Class "Allegris" cabin, which was set up outside the show.

Heated or cooled seats. Ultra-high-definition TV screens. Benches. Convertible beds. All-aisle access. And of course, the coveted privacy door.

Ever-more luxurious first- and business-class cabins that have hundreds of parts and require regulator approval are the latest hold-up as new airplanes arrive late to customers, according to the heads of the world’s biggest airplane manufacturers.

Boeing has 787 Dreamliners, a twin-aisle jetliner used on some of the world’s longest flights, on the ground at its South Carolina factory "that are held up for delivery for the seats, which obviously go in pretty late in the assembly process," CEO Kelly Ortberg said at a Barclays industry conference on Feb. 20.

Part of the problem is airlines’ rush to win over high-paying customers by offering comforts and more of the scarce space on board — even if a few extra inches.

"It’s getting the seats certified, and it’s not actually the butt part of the seat," Ortberg continued. "It’s the cabinet and the doors … for first class and business class. These are pretty complex systems, and getting those certified has taken both the seat suppliers and us longer than anticipated."

Similar issues are hitting Boeing’s main rival Airbus, the CEO of the European manufacturer, Guillaume Faury, said on an earnings call the same day.

"We have delays in seats" as well as cabin "monuments" like galleys and closets that are "delaying the time at which we can deliver a plane fully completed," Faury said.

Aircraft deliveries are crucial for manufacturers’ revenue because customers pay the bulk of a jetliner’s price when they receive the plane, rather than when they first order it.

Pricier seats

Airlines and aerospace manufacturers are highly regulated, and new seat designs, some features and even cabin layouts must win approval from regulators before taking to the skies. Passengers also need to be able to safely exit those seats in the case of an emergency.

Some new aircraft cabins are still awaiting certification, and delays are adding to years of supply chain strains and labor shortages coming out of the pandemic.

Luxury travel boom

New business class seats cost in the low-six digits apiece, which "compares to the price of luxury car," according to Recaro.

To airline executives they’re worth it. They say customers, especially after the Covid-19 pandemic, have shown they are willing to pay up to sit toward the front of the cabin.

Conclusion

The luxury travel boom has led to a rush to modernize aircraft cabins, but regulatory approvals and supply chain delays are causing hold-ups in delivery. Airlines and manufacturers are working to balance the need for comfort and luxury with the need for safety and efficiency.

Frequently Asked Questions

Q: Why are new aircraft cabins taking so long to certify?
A: New seat designs, features, and cabin layouts must win approval from regulators, and the process is complex and time-consuming.

Q: Why are airlines investing in luxury travel?
A: Airlines are responding to customer demand for premium travel experiences, and they believe the investments will pay off in terms of revenue and customer loyalty.

Q: What is the impact of supply chain delays on aircraft deliveries?
A: Delays are causing hold-ups in delivery, which can result in significant financial losses for manufacturers and airlines.

Q: How are manufacturers addressing the delays?
A: Manufacturers are working with regulators and suppliers to resolve the issues and get the new seats certified as quickly as possible.

Q: What is the outlook for the future of luxury travel?
A: The trend toward luxury travel is likely to continue, driven by customer demand for premium experiences and the desire for airlines to differentiate themselves in a competitive market.