Starlux Airlines is Taiwan’s newest global airline. While it launched operations in early 2020, the airline has really ramped up operations in the past couple of years, including increasingly flying across the Pacific.
In terms of service to the United States, the airline currently flies from Taipei (TPE) to Los Angeles (LAX), San Francisco (SFO), and Seattle (SEA), with plans to launch Ontario (ONT) flights soon. The airline operates long haul service with its Airbus A350-900s, which feature a first class product.
Nowadays there aren’t many new airlines introducing an international first class product, so it’s cool to see Starlux offering this. However, the airline is taking an unconventional approach to this cabin. When the airline first launched long haul flights, I wrote about how the carrier’s first class strategy didn’t make much sense to me.
I want to address this topic once again, because it still doesn’t make much sense to me, and I can’t figure out the economic justification for this strategy, especially with how few seats are selling!
In this post:
Starlux Airlines’ modest A350 first class seat
Starlux Airlines offers special first & business class products on its Airbus A350-900s, which are primarily used for long haul flights (though also used on some intra-Asia flights). Starlux is the only airline in Taiwan to offer first class.
Starlux’s A350 first class cabin consists of just four seats, in a 1-2-1 configuration. Arguably it’s not even a separate cabin, as it’s simply the first row of business class, and there’s no curtain between first class and business class. The airline is known for incredible quality, so in that sense, many people were surprised that the airline didn’t go more over-the-top with its first class.
Based on the hard product, this almost seems like some of the “business class plus” seats we’ve seen introduced in recent years, like the JetBlue Mint Studio, Virgin Atlantic Retreat Suite, Condor Prime Seat, etc. More than anything else, it efficiently utilizes the space at the bulkhead.
The seat has some useful features, like 60-inch doors and privacy partitions, 32-inch 4K screens with bluetooth audio, zero-gravity seat settings, and personal wardrobes for storing luggage. However, there’s no denying that the airline didn’t set out to create the world’s best first class hard product.
First and business class is exclusively between doors one and two, and the airline managed to fit 30 seats in this space (four first class seats and 26 business class seats). As a point of comparison, Qatar Airways’ A350-900s with reverse herringbone seats have just 24 seats in that space (though there is a little bar at the back of the cabin).
To be clear, I don’t think there’s anything wrong with introducing a first class product that’s incrementally better than business class, though you’d also hope that the price reflects that.
Starlux Airlines investing in first class service
Starlux Airlines is known for its great soft product in all cabins, and that also extends to first class on the A350:
- In Taipei, Starlux first class passengers receive chauffeur service to and from the airport (TPE), plus receive access to the Huan Yu VIP Terminal
- In Los Angeles, Starlux first class passengers are able to use PS, the private suite that offers chauffeur service to and from the plane, allowing you to skip the terminal altogether; if you’re traveling alone you have access to The Salon (a shared space), while if you’re traveling with someone, you have access to The Suite (a private space)
- Starlux has a great first class inflight service, with caviar, La Mer gifts, and more
Starlux is definitely investing in its first class soft product both in the air and on the ground. Whether that makes up for the lack of separation from business class remains to be seen, though.
Starlux Airlines first class pricing is steep
When we first saw Starlux Airlines’ first class product, many of us assumed it would come at a reasonable premium over business class, since it’s not even in a fully separate cabin. That didn’t turn out to be the case, though. Ever since the product was launched, Starlux has maintained the same steep pricing for first class, typically around triple the price of business class.
Admittedly lots of airlines have very high sticker prices for first class, but then there are ways to get a much better deal. However, most of those don’t apply here:
- Starlux Airlines offers limited opportunities to redeem miles for first class; it’s bookable through Starlux COSMILE, but I can’t imagine many people have huge balances with the program
- Fares aren’t considerably cheaper if connecting, as is often the case with other airlines
- I can’t imagine Starlux Airlines has many corporate contracts offering huge discounts to travelers, since the carrier doesn’t exactly have a global route network yet
- Many airlines will sell buy-ups to first class; though Starlux’s buy-up costs are ridiculously high; for example, at check-in you can typically buy a business class to first class upgrade across the Pacific for $5,000
At these fares, I can’t imagine Starlux will be able to consistently fill any substantial number of seats. Even with just four seats, you’re not going to regularly find people willing to pay these kinds of fares, in my opinion. Furthermore, while Taipei is an amazing city, it’s not Tokyo, Hong Kong, or Singapore, in terms of pricing power for tickets (quite to the contrary, people often originate travel in Taipei to get cheaper premium fares).
Is Starlux Airlines selling first class seats?
I’m completely open to the possibility that I just have no clue what I’m talking about, don’t understand first class demand levels in Taiwan, etc. Fortunately with the airline just having four first class seats in the cabin, it’s easy to look at how many seats have actually been sold.
I just quickly pulled up inventory for an upcoming 28-day period, between February 15 and March 15, 2025. How many seats have been sold on the various US routes?
- From Taipei to San Francisco, three of the 112 seats have been sold, representing a 2.7% load factor
- From San Francisco to Taipei, one of the 112 seats have been sold, representing a 0.9% load factor
- From Taipei to Seattle, one of the 112 seats have been sold, representing a 0.9% load factor
- From Seattle to Taipei, two of the 112 seats have been sold, representing a 1.8% load factor
- From Taipei to Los Angeles, 20 of the 160 seats have been sold, representing a 12.5% load factor
- From Los Angeles to Taipei, 16 of the 160 seats have been sold, representing a 10% load factor
Admittedly some people book first class very last minute, but that’s… not a lot of seats to sell.
This product seems like it could be better monetized
It doesn’t seem like Starlux Airlines is having much luck selling its first class. Starlux’s transpacific business class product is very good, but first class is priced roughly three times as much, all while not even offering a fully separate cabin.
This cabin ultimately comes at a fairly limited opportunity cost, given that the airline has a total of 30 seats between doors one and two, consisting of first and business class. Other airlines fit the same number of business class seats into that space.
If Starlux wanted to maximize revenue, it seems like selling upgrades to first class would be the best way to do that. These transpacific flights are quite long, so say the airline tries to charge somewhere in the range of $1,000-1,500 to upgrade a business class ticket to first class, without the extra ground services. I’m sure that’s something that some people would take advantage of, and it certainly seems better than consistently letting those seats go out empty.
For that matter, maybe these should just be rebranded as a business class “plus” product, with the same business class service, but better seats.
It seems to me like Starlux’s CEO likes the idea of having a proper first class cabin, and it’s a point of pride. I totally respect that. But it also seems really unusual for an airline to leave incremental revenue opportunities on the table, the way that Starlux is doing.
Bottom line
Starlux Airlines has been nicely growing its transpacific network for some time, and it now operates three routes between Taipei and the United States. Starlux has an intimate first class cabin on its Airbus A350s, with just four seats. Oddly it’s not even separated from business class, but is just the first row of the cabin.
While the hard product probably won’t blow anyone away, the soft product seems to be very good, both in the air and on the ground. Then again, the carrier’s business class inflight product is very good as well.
It seems to me like Starlux is struggling to actually sell its first class seats, and I feel like the airline could pursue a better strategy to monetize the cabin. I continue to be puzzled by the approach the carrier is taking.
In the interest of full disclosure, I do have my motive for making this post. 😉 Starlux is the only airline I haven’t yet flown in first class. While I’m happy to pay cash for a ticket, I simply refuse to spend $10K+ — that’s more than I paid for The Residence on Etihad’s A380 to Sydney!
So if anyone has any ideas for how to get a deal on a Starlux first class ticket, please let me know (to be clear, I want to pay my way in one way or another)! The carrier does have lower first class fares from Taipei to Tokyo and Singapore, but I also feel like that doesn’t give you the real experience.
What do you make of Starlux Airlines’ first class strategy?
Last night for the first time in four flights I actually saw someone in Starlux F! They let him exit the plane first ahead of all the J passengers. Interestingly enough the load for J was minimal- like six passengers the entire cabin!
On a related note, I’m posting here instead of your post from “I want everything” Starlux store post. I inadvertently walked past the flagship store in downtown Taipei and all their merchandise...
Last night for the first time in four flights I actually saw someone in Starlux F! They let him exit the plane first ahead of all the J passengers. Interestingly enough the load for J was minimal- like six passengers the entire cabin!
On a related note, I’m posting here instead of your post from “I want everything” Starlux store post. I inadvertently walked past the flagship store in downtown Taipei and all their merchandise is as cool as the pictures in that post.
Starlux now has a fourth jacket- the A350 Bomber jacket. They have them on sale at the Galactic lounge in T2 and I tried one on! I thought they were for display only and am kicking myself for not buying one (although it’s 72 where I live today). Only the Taiwanese website shows it but you can translate the webpage:
https://shop.jx-starlux.com/pages/starlux-jxstyle-a350-prestige-bomber-jacket
https://www.starlux-airlines.com/zh-TW/about-us/media-center/news/2024/202411011
Having the business class pax schlepping past your seat to the use the forward lav is not what I'd call a first class experience.
If you look at an interview with the CEO he mentioned that a lot of the high end vendors for food/amenities only cater to First Class products. So in order to procure them for business class they have to have a first class, which is why they decided to have a first class. That being said, there are a lot of ppl flying this product within asia
I think the strategy is for the occasional Taiwanese tech millionaire or billionaire when they travel to the US.
Billionaires flying commercial?
Corporate jet are not popular in Asia
Looks like they fly the A359 to Macau Saturdays only. Maybe that's the cheapest way to try it? Even if it's not the full onboard experience, I feel like a review of the VIP terminal would make such a review worth it.
I wonder if they reoutinely oversell business by four and then seat J pax in row 1, with J soft product. Would make sense.
In the event that someone wants to pay triple the price they just add the extra goodies and call it First for that particular pax.
What are load factors like in biz class? They can always oversell biz and put people in those first class seats which has limited opportunity cost as it isn’t a big footprint. So it’s like one big business class cabin with the odd person shelling out 3-5x here and there (prob rich dimwits and or corporate contracts).
I’d keep the model but allow better buy ups via a bidding process on the day. Then...
What are load factors like in biz class? They can always oversell biz and put people in those first class seats which has limited opportunity cost as it isn’t a big footprint. So it’s like one big business class cabin with the odd person shelling out 3-5x here and there (prob rich dimwits and or corporate contracts).
I’d keep the model but allow better buy ups via a bidding process on the day. Then you wouldn’t be cutting into the aforementioned dimwit and corporate contracts market.
Oh, you beat me to it! :)
From what I can see on the Starlux flight I'm currently on, there are actual F passengers in 2 of the 4 seats, which is not bad.
Chang has said in an interview in Taiwan that many premium suppliers will only deal with airline conpanies that have products labelled as "first class", hence they created a first class section in order to access those premium suppliers.
https://www.businesstoday.com.tw/article/category/183016/post/202306240007/
@ Eggheaddc -- Fascinating! So I'm not sure if Google Translate is providing the correct context here, but does anyone understand what's meant in practice? Practically speaking, what "premium suppliers" can't be accessed if there's not a first class?
Like, I see mention of caviar, but this seems to be a circular argument -- caviar is only available in first class, so they need first class in order to supply caviar for... first class?
I just read the article in Chinese. The premium suppliers mentioned in the article refer to are those provide in-flight food and beverages. It is more of a marketing strategy for the suppliers to “brag” that their products are used in first class cabin so to bring more potential business from others. This has to do with brand bias culture in the country.
That explains why Starlux has First Class (rather than Business+, or just a Business that costs slightly more, almost like an extra-legroom or "Allegris"), but still doesn't explain why they're not attempting to optimize the amount of revenue they can extract from the seat.
Just noticed how big the difference in density different seats have, albeit all having direct aisle access and 1-2-1 layout. The same space can fit 30 Safran Optima seats plus 4 toilets (or 34 if no toilets), or 24 super diamond plus 2 toilets. Kind of curious how any airline would choose the latter - would the slight difference allow them to get 20% more rev per passenger to make up for the 20% less capacity?
@ WorldLiner -- While it's definitely true that there's efficiency differences between seats, Qatar Airways just has a particularly un-dense layout on those original A350s. For example, China Airlines also has Super Diamond seats on its A350-900s (like Qatar Airways), and fits 32 seats between the first and second set of doors. Qatar Airways just has a huge amount of closet and galley space, plus bathrooms in that area.
I think you alluded to the real reason in the article. "It seems to me like Starlux’s CEO likes the idea of having a proper first class cabin, and it’s a point of pride" But aside from pride, don't underestimate the pettiness factor of one-upping EVA who kicked him out
Maybe they're for non-revs, a la AA with their soon to be extinct 777-300 Flagship First Cabins ..lol !
It's as simple as this: at the price points shown, First on Starlux is a terrible value. It's literally 300% the price of business class. Is it 300% better (especially given that it's in the same cabin)? Easy answer: no way in hell.
Business class is actually not a bad deal at those prices; STARLUX famously has a great business class. But for first? Their extra offerings aren't nearly enough to make it worth bothering.
Not a separate cabin. No need to argue. It’s a mixed-class cabin, at best.
Unless you think Delta is flying CRJs in a three cabin figuration.
There are some people having a decent amount of Starlux COSMILE award miles because of having co-branded credit cards issued by E-sun Bank in Taiwan. Also, from what I have heard, it is not hard to use Starlux award miles to book for first class.
@ RDGG -- If only the program sold miles in large quantities at a reasonable cost, heh...
You can try to find out if there is any way you can apply for E-Sun bank card as a foreigner. Although the co-branded cards doesn't have great sign-up bonus, the award miles earning rate by spending can be great even if almost all of Taiwanese credit cards charge FX fee.
If one does not have regular deposits from a Taiwanese employer nor a huge amount of saving in a Taiwanese bank, it is almost impossible to get a Taiwanese credit card, let alone one with a reasonable credit line.
Follow the money? Who’s funding the airline and are they based in Taiwan? Do they get “free” first flights?
Maybe if always expect to not sell 4 seats there’s minimal opportunity cost to trying but still doesn’t make sense without much scale
@ Alec -- That would Captain Chang Kuo-Wei, and his favorite seat is in the cockpit, and not in first class, as he often pilots Starlux flights. ;-)
You're right that business class isn't at capacity a vast majority of the time, so there's no opportunity cost in terms of selling more tickets. Rather, I view the opportunity cost in terms of generating more ancillary revenue, by getting those already booked on the flight to spend more.
CRAZY RICH ASIANS
Yes there are a lot of them in Taiwan. That’s why there are three global airlines on the island.
@ Ben -- But as the data shows, the "crazy rich Asians" clearly aren't springing for Starlux first class, in any sort of a meaningful way.
Singapore has an equal number of billionaires but a population of about 5M versus Taiwan having 23M. Hong Kong has more billionaires than Taiwan. Neither Singapore nor HK has a second major airline.
Starlux is doing it for show but probably also hopes that it will eventually have a 25% load factor.