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Premium Economy

Premium Economy. BRAND-NEW Premium Economy Class T otal enhancement of Economy Class experience. What is Premium Economy?. (according to seatguru.com)

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Premium Economy

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  1. Premium Economy

  2. BRAND-NEW Premium Economy ClassTotal enhancement of Economy Class experience

  3. What is Premium Economy? (according to seatguru.com) • Some airline carriers offer Premium Economy, a separate class of seating and service, that differs from standard Economy. Premium Economy is found mostly on international flights and, compared to standard Economy, offers about 5-7 inches of extra legroom as well as additional amenities, which can include: • 1-2 extra inches of seat width • 2-3 extra inches of seat recline • Adjustable headrests, legrests, or lumbar support • Larger personal TV screens • Laptop Power Ports • Premium Food Service

  4. Premium Economy Class • Separate cabin with 26-34 seats • 38” seat pitch • 19.5” seat width • 8” recline • 10.6” widescreen TV • In-seat universal power supply outlet • Phone/ iPod connector • USB port • J class blanket /pillow /head set • PEY amenity kit * Progressively being installed on long-haul aircrafts

  5. PEY Facts

  6. Meal Service

  7. Amenity Kit • Designed by G.O.D. ( Goods of Desire) • Plan to have 4 designs per year, 2- outbound , 2- inbound • Bag made from at least 90% recycled plastic bottles • Tooth brush made mainly from corn starch and cellulose.

  8. 747 – 400 Seating Map

  9. CX USA Pricing

  10. Pricing Advantage Higher booking class/inventory beyond HKG • W→ Y (unrestricted) • R→ B • E→ H All PEY fares are valid for 1 year with $50 rebooking fee

  11. Competitive Landscape 1-2 • BR Economy Deluxe product has been in the market for a long time – see published fares below. • Lowest rate • $1420.00 – SFO/TPE/HKG/TPE/SFO* • $1420.00 – SFO/TPE/SFO* • *04Feb13 • CX - $1500.00 (West Coast Rate)

  12. Competitive Landscape 2-2

  13. Customer Feedback Sue Chen - Sunshine Travel(BOS) I took your Premium Economy on my Feb trip and enjoyed it very much. Seats are comfortable, food is awesome, service is excellent, a great product you have there for us to have more reasons to sell Cathay in Boston. It is a superior product, a quiet section to enjoy the Cathay flight. Price is reasonable. We will continue to sell more Cathay and let our customer know that Cathay flight is a more enjoyable flight for their journey home. • Will Jennings -  Valerie Wilson Travel PEY is great for honeymoon couples and elderly leisure couples who don’t want to pay for business class but want something more memorable than economy class.  The greatest feature, besides the extra legroom and amenities is the seating configuration. Couples like the window/aisle of the 2-4-2 configuration rather than the 3-3-3 in economy class. They don’t want someone sitting next to them. DannVidana – Provide Comemrce (SAN) The majority of our Asia travelers from our company previously flew on a variety of airlines all with varying degrees of quality.  We recently begun to fly Cathay Pacific's Premium Economy Cabin and the feedback from our extended team is that first and foremost they are pleasantly surprised how comfortable and spacious the cabin and seats are and how great the service level has been from the check in process on through the additional amenities offered. Phil Baker, PeterGreenberg.com Premium economy is far superior to economy-plus seating found on United and other airlines that is often reserved for their frequent fliers. They offer extra legroom, but the seats are otherwise identical to economy. Compared to EVA, the Cathay seat is more comfortable, and the service much better. The seat was comfortable enough that I was able to sleep for 7 hours and had no backache at the end of the flight. One of the benefits of this ticket was that it could be cancelled or changed for a $50 fee right up to flight time. So was it worth the extra money? For me, it's a definite yes. • Fred Sherman, Yahoo! Travel • I think the Premium Economy service does provide a good value and offers convenience and comfort worth the additional cost. On flights to Asia that can be 14 or 15 hours, being cramped in a small seat, tightly surrounded by other travelers can be unbearable. The Premium Economy service offers a higher level of service without having to pay five times the price of a Coach ticket for a Business Class ticket to get it. I think with an airline like Cathay Pacific, that caters to and understands how to serve First and Business Class passengers, you get that same high level of personalized service in Premium Economy, adding to the value received for that higher ticket price.

  14. MARKETING Marketing Initiatives • H1 Brand Campaign w/ PEY focus – Integrated Partners included Forbes, Conde Nast Travelers, Entreprenuer • Online Fares + Booking Incentives – (ie. PEY + inflight sales vouchers) • Miles for Me Bonus Offer for selling PEY – ends April 30, 2013 Marketing PEY Selling Tools • Brochures (Hard Copies & PDFs available) • Photos & Banners (to be used on Travel Agent Portals: Virtuoso/AMEX) • Ipad/Iphone Apps • Seat Map/ Pics • Interactive PEY Tab on FB Page • FB - Ads to promote PEY • Highlight PEY on ORD/HKG, PEY double miles

  15. Current Promotions • Agent contest (registered CXAgents members) • USA gateway-HKG,. Travel :02Feb-30Apr, grand prize :2 r/t PEY tkt to HKG • Double PEY Miles - Travel: 01Jan – 30Apr13, registration: 04Dec12- 30Apr13 • ORD-HKG PEY , $100 gift certificate. -Travel: 01Apr – 01Jun13, selling: thru 01Mar • PEY promo fare - USA gateway – India. Travel: 15Mar-30Apr13, selling: 11Feb-18Feb13

  16. LOYALTY • PEY will earn 110% of Asia Miles / same for AAdvantage Miles • Holding a PEY ticket will give a better chance to acquire a Business class seat. • Guaranteed Premium Economy Class seat (for Diamond members who book “W” class 24-hour prior to departure)

  17. Program renews on May 1, 2013 with NEW PEY earning levels W/R 1700 480 680 1200 E 1400 400 560 1000 W/R 1000 225 260 700 E 800 170 260 530

  18. Sales Message Emphasize and benchmark VALUEover Economy Class rather than Business Class. • Value over cost. • Extra comfort and personal attention. • Enhanced meal service. • Better and easier pre-boarding airport experience. • More flexible redemption and upgrade policy.

  19. What’s New? India BOM – PEY Launched 02Mar13 DEL-PEY Launched MAA – PEY Launched HYD – PEY Launched

  20. Current routes with PEY service

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