Air New Zealand Drops Their Innovative Premium Economy Product

Filed Under: Air New Zealand

Premium economy is the hottest new airline offering of the past decade, as globally we’ve seen many airlines eliminating international first class and installing premium economy in its place. Perhaps that’s simply a reflection of how much hard products have improved, since in many cases business class is like what first class used to be, and premium economy is almost as nice as business class used to be (many years ago).

For most airlines, premium economy is very similar to what you’d find in domestic first class on a US airline. Air New Zealand perhaps has one of the most original premium economy products in the world on their 777-300ER aircraft, called the Spaceseat.

Air New Zealand’s 777-300 premium economy product

Air New Zealand’s 777-300 premium economy product

Here’s a video about the seat:

While the seat looks awesome as far as premium economy products go, it also strikes me as extremely inefficient, especially in comparison to the other premium economy products out there.

The problem was that when they originally introduced their new premium economy seat, people found the seats to be highly restrictive due to the lack of legroom. As a result, in 2011 Air New Zealand took out a row of premium economy seats on their 777s, adding up to six inches of legroom to each seat. As you can probably tell based on the 777-300ER seatmap, the current configuration is extremely inefficient.

As a result, Air New Zealand is discontinuing their current 777-300 premium economy Spaceseat, and will instead be replacing it with the same premium economy product they have on their refurbished 777-200 and select 787-9 aircraft.

Air New Zealand’s new standardized premium economy product

The number of premium economy seats on the 777-300 will be increased from 44 to 54, and the change is expected to occur starting in February 2017. This product looks like a more traditional premium economy configuration, similar to what you’d find in domestic first class. The product will be going from a 2-2-2 configuration to a 2-4-2 configuration on the 777.

Furthermore, Air New Zealand’s newly delivered 787-9 aircraft will have a bigger premium footprint, including 27 business class seats (rather than 18), and 33 premium economy seats (rather than 21).

Air New Zealand’s business class product

Per Business Traveller, here’s what Air New Zealand’s general manager of customer experience had to say about the elimination of the Spaceseat:

“When we unveiled the Spaceseat in 2010, it was revolutionary and clearly the best option in the market at the time, as a string of international awards has proven.

“However, seating technology and materials have come a long way since then and our customer research now shows consistently higher satisfaction scores for our newest Premium Economy offering so it’s time to continue Air New Zealand’s evolution in this space.”

“With these changes, we look forward to being able to offer our customers a consistent Premium Economy product across our long-haul fleet and being able to welcome even more customers into our premium cabins with the expanded premium footprint on our Dreamliners.”

Bottom line

It’s unfortunate that in this case Air New Zealand’s premium economy innovation didn’t pay off, though I guess the product was just too inefficient. It was perhaps a great idea when it was introduced, but by the time they had to remove a row, they were at a significant disadvantage, and just couldn’t make the numbers work.

Have you flown Air New Zealand’s Spaceseat? Are you sad to see it go?

  1. I flew in one marketed as Economy on their BNE-AKL service. Since they didn’t have premium economy on Trans-Tasman services, if you booked the BNE-AKL leg of the BNE-AKL-LAX 777 flight, they marketed these seats as regular economy, and for a while you could select them for no extra charge (I believe this has since been done away with).

    It was a fun experience, the first time I had flown in a “premium” seat. The odd angle of the seat pairs provided a lot of privacy, but made it difficult if you had a companion you wanted to talk to, as the “shell” made it difficult to see your partner.

  2. Lucky – I know you would probably scoff at this but you should try to review it before it gets pulled from service. It is so unique for premium economy that I doubt it will be replicated in the near future; hence why I think it would be great if you could review it and memorialize it.

  3. I love Air New Zealand! Willing to try something new and willing to admit it when it doesnt work out.

  4. I’ve been tempted to buy premium economy seats on Air Canada for international vacations, but the sale prices on real business class can sometimes actually be cheaper, or at least close to, premium economy.

  5. I have flown in the space seats and loved them. Loved. I am someone that needs to prop their head into a spot to sleep as I can’t do the bobble so many others do. I flew AKL-LAX in April in the space seat and was able to get some really great sleep. They give you a small bean bag for your feet, which when I put it on top of my backpack, it was a great foot rest. I had two pillows they provided, one I did for lumbar, the other head and was able to get into a great position to sleep.

    I did have a really tall client (about 6’6″) that flew one way in the space seat and one way in the non-space seat and he preferred the non as he was a bit restricted in the space seat. His tiny wife liked the space seat though, so I can see how tall people will applaud the change.

  6. When I had a Spaceseat a couple of years ago from AKL to LAX I was shocked by the poor legroom.

    I flew Premium Economy on the 777-200 last month from TBU to AKL and was very happy with it. Admittedly it’s a much shorter flight, but I think it’s both a more economical configuration for both airline and passenger.

  7. I love the Space Seat as a Premium Econ product. I’ll definitely miss it but I thought something was up when the 789’s got a more conventional Premium Econ seat.

  8. The Space Seat is a love it or hate it product. I didn’t mind it when I flew it, but have recently tried the new Premium Economy product which is just fantastic and much better than the Space Seat.

    Also it was bound to happen. PE in a 2-2-2 layout? That can’t be profitable (even at NZs high prices) seeing as the layout is the same as a lot of other airlines Business class seating…

  9. Just saw these seats on Friday LAX-LHR. I didn’t sit in Prem Eco but they do look cool. I could see the angle being trouble for some though.

  10. It was a novel product but its days were numbered from the beginning. Oh well, at least it had a good five-year run.

  11. While they looked good, these seats were VERY uncomfortable. So glad that they are changing them. I would go as far as saying that I preferred being packed in economy rather than sitting in these for long haul flights.

  12. The space seats also weighed a LOT, resulting in more fuel burn. Another reason to get rid of them.

  13. This is a big mistake in my view…The space seats are excellent, comfortable and it is almost as good as business class. With the new 2-4-2 configuration they are talking about, the premium economy is nothing but a glorified economy.

  14. So sad! Completely disagree with those who question the comfort and color of the spaceseat….I just flew Auckland to Melbourne in one of these and it was extremely comfortable and WELL worth the money. The white color is soothing, too. The food was also top notch in Premium Economy. Glad I got the experience but really upset they are changing the seat. And the 2-2 seat combo meant not too many others using the toilets. I think ANZ is making a mistake.

  15. Flown three time to San Francisco from Melbourne return purely for the space seat. If they change something surely they should notify customer. Get onto San Francisco long flight no space seat, same seat number but now the the usual cattle class, seats leaning back on you. Staff flat out due to increased people. Toilet queues.
    We booked space seats should have got them , no choice now, their premium economy space seats started with such big publicity, it has put them below the other airlines. Customer service when complaining is zilch. Bulldog

  16. @ Disappointed Air NZ traveller @ Rosemary – No matter how much less comfortable the new seats are, it’s never a mistake for Air New Zealand, as they’re making more profit and (some) people are actually liking it.

  17. @Disppointed Air NZ traveller says: “…With the new 2-4-2 configuration they are talking about, the premium economy is nothing but a glorified economy…”

    That didn’t make sense. Premium or glorified, what’s the difference? It still has the word ECONOMY in the description.

  18. I fly between New Zealand and the US several times a year. And every time I could afford it (or had a bump-up available) I looked forward to traveling in an Air New Zealand premium economy space seat. A real plus was the fact that 3 out of 4 space seats were aisle seats; especially convenient for long-haul flights. And it was great not having to worry about infringing on someone-else’s space during a recline (as the recline was self-contained within the individual ‘egg.’) I will definitely miss the space and privacy of the space seat!

  19. Recently travelled, Nov 2016, in premium economy spaceseat. It was fabulous , we booked centre seats which were heaps roomier than the window/aisle seats, and with only 2 in centre we had easy access to leave our seats without disturbing other passengers. Sad that we may not be able to book these again. We hadn’t flown Air New Zealand for many many years, preferring to use Emirates Business Class, which was a good comparison, but now looks like we may have to return to Emirates. Shame Air New Zealand had the upper edge for such a short time.

  20. I am an Airpoints Gold member who flies regularly in premium economy from New Zealand to the US several times a year. I have specifically booked seats on Air New Zealand because of the comfort and value of the ‘egg seats.’ Now that these seats will no longer be available, I will actively look for seats on other airlines.

  21. I loved spaceseat and am upset to see them go. to tall persons (I am one) who complained, do your homework and you’ll find that the bulkhead seats – ESPECIALLY 23B – have ridiculous legroom, and the absence of a footrest is trivially overcome with a carry-on plus the beanbag as one other reviewer pointed out. the shape of the spaceseat provides unlimited ways to ‘get comfortable’ as opposed to the standard seat, and when you combine that with ample legroom, even a fidgety guy like me can get relaxed on an 11/12-hour LAXLHR flight. the privacy and easy aisle access is great, too, in a dark cabin on a long haul. finally, spaceseat has little storage nooks where you can park your headphones or laptop without getting out of your seat or jamming them in a seatback pocket where you’re not sure they’ll stay or maybe get clunked in the shins with them if the guy in front reclines.

  22. This is bad news. My partner and I have used the SpaceSeat Premium Economy between London and Auckland repeatedly since their introduction, and loved it. My partner is 5 feet tall, I am 6 feet, but we both managed fine, and enjoyed the extra privacy of the paired aisle/window seats, the ‘egg’ capsule allowing seat recline without affecting anyone else, the nooks for stowing things during flights – so much to love about the design and layout. We were planning a trip to NZ again for December 2017, and considering Air New Zealand again (our favourite airline), but scrapping the space seats may influence us to look at other airlines. Air New Zealand led the way in Premium Economy innovation, but this seems like going back to join the pack, not finding new ways to lead.

  23. Have flown Air NZ B777-300 in Premium Economy several times and can say that Air NZ’s drive to join the pack with these new seats and crammed configurations is a retrograde step. It’s not about passenger comfort no matter how they spin it although “aligning our customer experience” was a nice way to say we are downgrading you to what eveyrone else gets!! So doing away with the space seat will result in having more passengers in PE and having to wait to use the toliets, longer food service time before being able to go into snooze mode, less privacy especially when stuck in a four seat bank looking to crawl over someone to get to the toilet, and less space when the guy in front puts his seat back into your space. So for all this do we get a reduction in the price of this downgraded PE seating arrangement? you guessed it. No. The Space Seat was innovative and a real bonus for the extra money. It was obviously too good to last.

  24. I always flew Los Angeles to London return in the Air New Zealand Spaceseat, i can’t believe the seats are gone! Combined with the very nice staff and fab food it was the ultimate in flight experience outside of business class. Now i have to be squeezed next to someone else and have my elbow pushed off the armrest to make room for their elbow and worse still the person sitting next to me will frequently be asking me to get up and let them pass, which is very annoying. That never happened with the Spaceseat.
    Obviously many of the people who have commented positively above are from the Air New Zealand ‘customer experience’ team.

  25. Having flown the SpaceSeat to LAX I can confirm it was a really great product, but not so good for the overnight return flight as the leather was too thin and hard for comfortable sleep without much recline.

    I’m pleased they’re dropping this seat.

    Now there is only one choice for international long haul in Premium Economy.

    NORWEGIAN 787-9 has more pitch and recline than any other airline, in a proper seat with almost flat leg rests and IFE and tray in armrest. Like the Club class of old, this is now my favourite, affordable seat in the sky.

  26. Loved the space seat. Flew from LAX to Auckland and back. I don’t know how comfortable the center seats were but my partner and I were in the 2 seats on the window side. Felt like my own private space with tons of room.

  27. I totally agree with you Barry! The ‘egg seats’ were something to look forward to, rather than something to dread. I used to prioritize (and pay more for) Air New Zealand premium economy, but now that premium economy is basically the same between airlines, I just book whichever airline is the least expensive on a particular route. 🙁

  28. Have regularly used ANZ premium economy when flying LHR to LAX as my wife and I loved the space seats and the 2-4-2 layout. Now the space seat has gone and they have put 10 extra seats in the same space, so it is just like everyone else’s premium cabin but at a higher price. Have now booked with Virgin for our next trip from London to LA as it is cheaper, and they have more flights each day.

  29. Have loved the space seats. Looking to fly in Feb 2018. Premium economy is 3 times the price of economy and only $500 less than business. What gives?

  30. In my view it’s a downgrade in customer experience removing the Spaceseats, driven by commercial reality unfortunately. I used to fly exclusively Air NZ Premium Economy for the value it offered but now look at other airlines as they all have similar offers in this category. The Spaceseat was a unique point of difference in favour of Air NZ.

  31. Sadly just discovered this news. Enjoyed the space seat AKL – LAX and loved it. No elbow bumping, leg shifting with neighbour and place to keep eyeliner to myself.
    Now I’m in new product and really want to hop off and hope to get another flight with the last remaining space seats in the fleet. Adios NZ for me now. No reason when MeL- LAX non stop is faster and same premium product with VA.

  32. What a disappointment to board Air New Zealand last week looking forward to enjoying the space seat in premium economy, as I have since they were introduced, to find myself looking at the old ANZ style of seating. Talk about going backwards! The loss of privacy and the 4 seats in the middle made me rethink paying the astronomical price in the future and just settle for economy! The service and the food, along with little extras have also suffered in premium economy. No more drinks while finishing up the boarding process. Just another airline pushing to increase $ while claiming it’s for my comfort. Please don’t insult me. And rethink the loss of Air New Zealand as being a unique experience.

  33. The premium economy seats, a.k.a. space seats, were fabulous. Air New Zealand really made a massive mistake taking them away now. I’m a gold member with Air New Zealand. But I am going to start flying other airlines now. Don’t know if virgin Atlantic flight between New Zealand and the US if they do, I will start flying them. Very disappointed with Air New Zealand.

  34. I’ve flown ANZ premium economy for years.
    The ANZ premium economy space seating was well worth paying more.
    There is no way that I’m paying a premium price for the new seating. They are simply not worth the money.
    I few from London to LA in September, 2017 with the space seating 2X2X2 but I find to my annoyance that my return flight in October will have the new 2X4X2 seating–on the same plane!

    I’ve flown the ANZ London to LA route once or twice a year for years–since the space seating was introduced–but I will no longer use Air New Zealand.

  35. In 2015 Air NZ took home top honors for their Premium Economy winning all 3 categories. Best class, best seat (the Spaceseat) and best service. Google it. I believe they also posted a record in profits to the tune of $750 million. Let me think about this…. they have the best seat in the business and concocted some BS story how it didn’t work???? I flew in Premium Economy before the Spaceseat and when then the Spaceseat arrived I couldn’t believe how incredible it was compared to the old ones, and so comfortable to be able to sleep long haul. The new seats don’t sniff the Spaceseats.
    It’s all about money folks – getting more people in the plane and trying to spin it that it is a big improvement. Stop the insanity!
    Air NZ’s economy class is the most uncomfortable I have ever flown but hey they get 10 seats in a triple seven when they used to have 9. Only Jumbos had 10. One more seat per row – do the math. Now the same with Premium economy – 8 per row instead of 6
    Air NZ has taken another step backwards. I miss the Spaceseats. Just be honest Air NZ. You want to maximize profits.

  36. We won’t be flying Air NZ as much any more. Air NZ’s Premium economy service was excellent and almost compensated for the horror of going through LAX on the way to London. Our company briefly stopped flying Air NZ when Air NZ dropped the London-HK sector (which meant LAX was the only through route to London). But the space seats were so good that we started using them again. Now, we’ll move back to one of the Asian airlines so we don’t need to face US immigration and security.
    Hopefully Air NZ will come up with something innovative again soon. I’ve been flying Air NZ for fifty years and became a life member of the koru club in the early 1990s so it is a shame to stop using them. But, if they insist on axing their most attractive feature, we may as fly someone else.

  37. I too loved the space seats and am very unhappy they are gone. The duvet and beanbag made it extremely comfortable, and facing away from your neighbour gave good privacy.
    I chose ANZ specifically because of these seats and flew every time from London to LAX and back – even though it is less convenient for checking in both in London and LAX.
    I didn’t find out the space seats had gone until I just now booked my flight for January from London to LAX – it was only when I was choosing seats I found out.
    They kept it quiet. Now I am stuck with 2-4-2 and no aisle seat availability. Very poor.
    Won’t fly them again – back to Virgin for the LA route.

  38. I too loved the space seats and am very unhappy they are gone. The duvet and beanbag made it extremely comfortable, and facing away from your neighbour gave good privacy.
    I chose ANZ specifically because of these seats and flew every time from London to LAX and back – even though it is less convenient for checking in both in London and LAX.
    I didn’t find out the space seats had gone until I just now booked my flight for January from London to LAX – it was only when I was choosing seats it became clear.
    They kept it quiet. Now I am stuck with 2-4-2 and no aisle seat availability. Very poor.
    Won’t fly them again – back to Virgin for the LA route.

  39. How very sad and disappointing. We only travel to NZ once every 2 years and we save up to specifically to have the spaceseat experience.
    Being slightly ‘larger’ than the average male the spaceseat made a long journey much easier and actually an enjoyable experience.
    We’ll have to look at alternative airlines now to see what they can offer.
    I really can’t face 26 hours in an economy seat when I’m 6’4” and an ex rugby player, not good!!

  40. I too loved loved loved the Spaceseat!!! I am extremely disappointed that they have been removed! I really loved the off centre seating. The food tray was much more comfortable, for me, in this position rather than the ones now that come out of the arm rest. I found the leg room more than enough! I have to agree that the decision to remove them was a purely financial one. What a shame!! Bring back the SPACESEAT!!

  41. Oh no! I share the same sentiments as other travellers – I love the Spaceseat! Flying Auckland to London via LA has always been my preferred route to the UK despite US immigration process, and since introduced enhanced by the Spaceseat premium economy seating. The configuration meant easy access to get up and walk around too as well as privacy when travelling solo. I have just returned from Frankfurt and Hong Kong and while I rate Air NZ’s premium economy much higher than Lufthansa’s I was disappointed to see the 2x4x2 configuration. But I thought hey it is only 12 hours to Auckland. Thank goodness I was on the aisle but a little too close to my neighbour than I was expecting. But to think this is now the layout on the NZ1 route….I could not imagine paying for PE and being stuck in those middle seats for 24 or so hours.

  42. I have recently traveled in Air New Zealand premium economy on a Boeing 777-300ER and I must say I was not impressed.!
    The Service was good but the seat only Average”my main problem with the seat was that the seats in front of my seat had the”supports” of the seats exactly in front of me so it was not possible to place anything under the seat in front of me and also uncomfortable to stretch out my legs as they had to be either side of the chair supports in the row in front..
    I suspect this is because the seats have been retro fitted and the supports needed to be in a particular part of the air frame ?
    I have also traveled on Singapore Airlines premium Economy and found the Singapore premium economy much better, More comfortable and with lovely noise cancelling headphones,
    Considering the Air new Zealand premium economy cost almost 3 time the cost of advertised economy but only uses 1 1/2 times the seat space I think it definitely is not worth it.
    In case you are wondering I am only 63 kilos in weight and 5 foot 4 inches tall !

  43. Having flown in the Premium Economy Space Seats, I loved the total experience. Loved it so much I have talked family and friends into flying Air New Zealand just to experience the space and comfort and now they wont get the chance. The new seats are just like every other airline and what a shame.

  44. Well, we won’t be flying ANZ any longer. We actually looked forward to the space seats as much as our destination! We’ve recommend the experience to friends and family for years. ANZ was our go-to airline for trips to London, but no longer. Sad.

  45. Sadly ANZ have fallen in behind the herd, the Spaceseat was something different, being 5’10” I didn’t have an issue with the legroom but loved zero intrusion when the person in front reclines.
    Flew a few times to LA to see family but not sure I will now fly again as ANZ’s point of difference has disappeared, now down to price and the race to the bottom.

  46. The Spaceseat was the best flying experience I’ve ever had. I’ve been telling people to flying Air NZ PreEcon for years. Very sad that this amazing experience has now disappeared. I LOVED those seats!!!

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