South African Airways premium economy product to be part of its long-haul restructuring: SAA Part 2

South African Airways (SAA) is planning to introduce a premium economy product as part of its long-delayed widebody fleet renewal plan. New widebody aircraft to replace its current fleet of A330s and A340s along with a new premium product mix are critical elements of SAA's plan for turning around its highly unprofitable long-haul operation.

SAA will join a growing list of airlines to add a premium economy product. As premium economy becomes more common, airlines which had been holdouts such as Singapore Airlines are increasingly being pressured to join the trend.

For SAA, the tipping point is its inability to compete effectively on its largest international destination, London Heathrow. Johannesburg-London should be a lucrative route but has become SAA's biggest loss-maker.