In late 2022, I first wrote about Beond Airlines, a fascinating premium airline startup. The airline is now a few weeks from launching operations. I’m excited to see this business model evolve, as I’m both intrigued and confused.
In this post:
The details of Beond Airlines
Beond Airlines is an all-business class airline with lofty expansion goals. The airline is headquartered in Dubai, but its first hub is in the Maldives. The airline is billing itself as “the world’s first premium leisure airline.” I’m a bit confused by that claim, as you’d think that La Compagnie would qualify as that. Or is the distinction that New York to Paris isn’t a leisure market? Anyway…
Beond Airlines is now weeks from launching operations, and the company has outlined everything we can expect, from the fleet, to the route network, to the passenger experience.
Beond Airlines fleet
Beond Airlines is launching operations with an Airbus A319, which is registered in the Maldives (this is also where the company’s Air Operator’s Certificate is). The first aircraft has the registration code 8Q-FBA, and it’s roughly 20 years old, having first flown for EasyJet, before being transfered to some other airlines. The A319 features just 44 business class seats, in a 2-2 configuration. I’ve gotta say, the Beond Airlines livery is gorgeous.
The airline intends to take delivery of an Airbus A321 in late 2023, which is expected to feature 68 fully flat business class seats. Then in 2024, the airline intends to take delivery of its first Airbus A321LR, which is also expected to feature 68 fully flat business class seats.
What’s wild is the carrier’s growth plans beyond that. Within five years, Beond Airlines hopes to have a staggering 32 aircraft in its fleet.
Beond Airlines destinations & routes
Beond Airlines is launching passenger operations as of November 2023:
- As of November 9, 2023, the airline will launch flights between Male (MLE) and Riyadh (RUH)
- As of November 15, 2023, the airline will launch flights between Male (MLE) and Munich (MUC), with a refueling stop in Dubai
- As of November 17, 2023, the airline will launch flights between Male (MLE) and Zurich (ZRH), with a refueling stop in Dubai
- The airline intends to launch flights from Male (MLE) to Dubai (DXB) and Milan (MXP) as of March 2024, though tickets aren’t yet on sale
Within five years, the airline intends to use its fleet of 32 aircraft to fly to 60 destinations around the globe.
Beond Airlines cabin & seats
Beond Airlines has fully flat seats in a 2-2 configuration. The seats are designed by Optimares, and the airline has already ordered these seats for future aircraft, so you can expect them on other aircraft as well.
Rather than having traditional personal televisions, the airline is distributing iPads to passengers, and they can be placed in the personal device holders.
It goes without saying that these aren’t cutting edge business class seats, but this is a leisure airline targeted at couples and families, so things like direct aisle access aren’t as important as on other airlines.
As far as amenities go, you can expect tableware from William Edwards, silverware in partnership with Robert Welch, and chilewich placemats and crystal glassware.
Beond Airlines fares
Beond Airlines has three different fare bands for business class, and there’s quite a bit of differentiation between them:
- The Delight Experience fare class includes 40kg of checked bags, 10kg of cabin baggage, offers seat assignments for a fee, doesn’t offer lounge access, and only offers ticket changes for a fee
- The Bliss Experience fare class incrementally offers seat assignments for free and lounge access
- The Opulence Experience offers 60kg of checked bags, 15kg of cabin baggage, and free ticket changes
So, what are fares like? For tickets originating in Zurich, I see roundtrip fares starting at $3,378.
For tickets originating in Riyadh, I see roundtrip fares starting at $1,903.
If the carrier’s one-way fares were a bit more reasonable (they’re far from half the cost of a roundtrip), I’d review the airline in a heartbeat, just out of curiosity…
Beond Airlines management & investors
In case you’re wondering who is behind the airline, two major parties are SIMDI Group (a Maldivian company that provides products to the hospitality industry) and ARABESQUE (a UAE-based investment firm).
Here’s how Beond Airlines CEO Tero Taskila describes his vision for the airline:
“Welcome to Beond. Our aim is simple: to fly our customers to the most unique and unspoiled destinations where they can release their inner explorer on the most memorable vacation of their lives. Today is but the beginning of our vision for our customers, embodied by this beautiful aircraft — inside and out. We could not be more pleased to showcase it in Maldives, our home, and Dubai.”
Here’s how Beond Airlines Chief Strategy Officer Max Nilov describes the airline:
“Today is the realization of a dream I first had 20 years ago. I had a dream of this airline, for this aircraft, and for this experience for passengers. We have created a premium experience coupled with an operating philosophy that is unmatched.”
Here’s how Beond Airlines Chief Commercial Officer Said Sascha Feuerherd describes the airline:
“The response by customers and stakeholders has been excellent in our launch cities — which was to be expected. And now the interest has grown from other new origins on our route map. I look forward to greeting our first passengers as they board.”
Here’s an interesting interview that CNN’s Richard Quest did with the company’s CEO a few months back:
My take on the Beond Airlines concept
My gosh, I have so many thoughts on Beond Airlines.
First of all, to the carrier’s credit, I’m impressed by the speed at which the airline is launching operations. The airline will be flying in the coming weeks, and actually created what looks like a nice and thoughtful product.
Now, if the carrier’s intent were truly to primarily serve the Maldives in the long run, I’m a bit skeptical:
- There’s only so much that airlines can grow in the Maldives, since ultimately the destination is constrained by how many hotel rooms there are, and how much inter-island capacity there is
- The Maldives is a seasonal market, and is generally quiet over the summer months; when you have assets as expensive as aircraft, it’s really hard to make service work if the demand isn’t there year-round
- This airline will face a lot of competition, given how much air service the Maldives sees, and the fact that Beond Airlines won’t have connecting traffic or name recognition
- While an all-business class concept sounds sexy, for the time being the aircraft having to refuel in Dubai will limit the passenger experience in terms of being able to rest
- Beond Airlines’ pricing isn’t actually better than existing, well established carriers in the markets, though admittedly they usually require connecting
- Operating service to the Maldives from 60 destinations seems totally unrealistic to me
All that being said, there are some ways I could see the airline pivoting and doing reasonably well:
- If the airline plans to fly 32 aircraft to 60 destinations, the airline really should be considering serving point-to-point markets that don’t include the Maldives, especially counter seasonally; there are plenty of other potentially lucrative point-to-point markets
- Even if not offering scheduled commercial service, I could see a fleet of planes configured like this doing pretty well on the leasing market, for everything from sports teams, to luxury tour groups
- While historically the concept of an all-business class airline hasn’t worked, broadly speaking, I think the concept has more potential then in the past, given how long range and fuel efficient jets have become (like the A220 and A321LR)
- It would be interesting if Beond Airlines could establish itself as a global premium leisure airline; admittedly getting permission to operate some routes will be tricky
So I’m utterly fascinated, but also a bit confused. Personally I’d be very surprised if in the summer of 2024 (low season in the Maldives), Beond Airlines is operating five routes to Male, because I just don’t see where the demand is supposed to come from, given the established players in the market.
Bottom line
Beond Airlines is the newest airline startup, headquartered in Dubai and with its first hub in the Maldives. The airline will soon start flying an Airbus A319 equipped with 44 seats from Male to Munich, Riyadh, and Zurich, with plans to expand to Dubai and Milan in March 2024.
What a concept this is, especially given the carrier’s goal of serving 60 destinations with 32 aircraft in the next five years. The airline has an uphill battle, though I’d love to see the carrier succeed.
What do you make of Beond Airlines?
The first flight from Zurich to Male, via Dubai Al Makthoum Airport just departed last night.
The scheduled ground time in Dubai was:
Arrival: 07:05
Departure: 07:50
so just a short 45 min Ground Time
The actual timings were:
Arrival: 06:51
Departure: 08:44
An almost 2 hour ground time.... not an excellent performance, but almost no time saving if you were to fly with the ME3.... and certainly a...
The first flight from Zurich to Male, via Dubai Al Makthoum Airport just departed last night.
The scheduled ground time in Dubai was:
Arrival: 07:05
Departure: 07:50
so just a short 45 min Ground Time
The actual timings were:
Arrival: 06:51
Departure: 08:44
An almost 2 hour ground time.... not an excellent performance, but almost no time saving if you were to fly with the ME3.... and certainly a much longer traveltime, than the nonstop from Zurich with Edelweiss Air....
Let's see if they make it "Beond" 2024..... i wish them good luck...
WHat was the reason for such a long ground time? And how was the overall inflight experience though?
What was the reason for such a long ground time? Other aircrafts priority takeoff? What was the inflight experience like? I'm going with them in February..
you gotta check out the ceo’s linkedin - it’s wild
The local partner SIMDI is a bit of a scammer, so I wouldn’t really believe anything he says. The airline hasn’t even actually been approved for national carrier status! Why is the CEO not correcting Mr. Quest in the interview?
All in all, an interesting idea but very very skeptical. What makes me think it could be doable is the fact that every premium cabin in every flight I’ve taken in since 2020 has been...
The local partner SIMDI is a bit of a scammer, so I wouldn’t really believe anything he says. The airline hasn’t even actually been approved for national carrier status! Why is the CEO not correcting Mr. Quest in the interview?
All in all, an interesting idea but very very skeptical. What makes me think it could be doable is the fact that every premium cabin in every flight I’ve taken in since 2020 has been completely full without a single remaining seat on QR, EK, and Saudia. Those people have more money than God.
I wish them luck. And I hope they create a lot of jobs! God knows we need them.
There are places where lots of money allows making decisions that can't be rationally justified, but don't have to be. In the oil-rich rights-poor countries of the UAE, it's ok to arrest a couple kissing on a beach, or throw hundreds of millions of dollars at an airline plan even SBF couldn't get approved.
If you're smart, you won't enter into a country that wants you locked up for kissing, for yelling at a rental-car...
There are places where lots of money allows making decisions that can't be rationally justified, but don't have to be. In the oil-rich rights-poor countries of the UAE, it's ok to arrest a couple kissing on a beach, or throw hundreds of millions of dollars at an airline plan even SBF couldn't get approved.
If you're smart, you won't enter into a country that wants you locked up for kissing, for yelling at a rental-car ripoff agent who won't return your passport, and that will kill Americans and Jews when possible.
This "dream" is fanciful. I give it 18 months at best.
After watching the video I am extremely sceptical about the long-term viability of Beond.
First of all the claim that they'll offer nonstop longhaul service on a narrowbody cannot be true. The range of an A320 simply isn't sufficient. To Europe they will have to refuel in Dubai (where they probably also will have a crew-base, to be able to observe crew-rules). Even with a A321-XLR, which is not in operation yet, it would...
After watching the video I am extremely sceptical about the long-term viability of Beond.
First of all the claim that they'll offer nonstop longhaul service on a narrowbody cannot be true. The range of an A320 simply isn't sufficient. To Europe they will have to refuel in Dubai (where they probably also will have a crew-base, to be able to observe crew-rules). Even with a A321-XLR, which is not in operation yet, it would not be possible. The CEO's claim of a future nonstop service to Sydney is not credible, as the distance between Male and Sydney is beond (sic!) the range of an A321 XLR.
In terms of the "extremely low cost" of operation this can, if at all, only refer to capital cost of their aircraft, IF they got them cheaply during COVID times. Operating cost of an A320 are NOT 80% lower than operating a widebody, especially not on a per-seat basis. Maybe slightly lower, but a widebody does not need to stop in Dubai and incur landing fees and the extra fuel burn of another take-off.
Finally, Emirates operates 4 daily services with B777, that's 168 daily seats in business-class oneway. Qatar Airways operates 3xB777 and 1xA320, with between 84 and 138 daily seats in business class. These two alone can make life very miserable for Beond, by offering discount-fares to the Maldives. As Beond has to refuel in Dubai anyways, the advantage of "nonstop" compared to a connection via Dubai or Doha is much diminished. Plus there is the value of their vast networks and frequent flyer programs.
Overall I rate Beond's chances similar to the chances of a snowflake on a beach in the Maledives. Maybe it is just a clever scheme to relieve investors from surplus cash and fund some jobs in Dubai (where management is located) with it.
Despite refuelling it could work to Europe. None of the ME airlines offer direct connections.
Business class seats are often sold out during the holiday season.
Heres the problem i see:
Today's Savvy traveler wants max return on their money.
If i'm going to spend $3000+ on a RT ticket, i'd better be getting points/miles/status. I could easily take a qatar/etihad/emirates flight for that price and get a world class lounge, state of the art seats, miles to redeem for further travel and work my way towards status OR book my trip with miles.
Now the problem with...
Heres the problem i see:
Today's Savvy traveler wants max return on their money.
If i'm going to spend $3000+ on a RT ticket, i'd better be getting points/miles/status. I could easily take a qatar/etihad/emirates flight for that price and get a world class lounge, state of the art seats, miles to redeem for further travel and work my way towards status OR book my trip with miles.
Now the problem with Beond starting a FF program is they only fly to 1 destination and that destination is one people visit infrequently. Unless you're flying me directly to my resort to avoid the $600 (speedboat/propeller flight) this is really only for the very wealthy or those wanting to flaunt on instagram.
It’s wild how Emirates’ marketing has been successful at making people believe they have “state of the art” seats. Their 777 business class seat is totally outdated, that Beond seat looks much better (fully flat, no middle seat). And the 777 is what Emirates fly to the Maldives
Have you seen those seats in a fully flat position? Besides their "Ottoman" seats available only in the first and middle row, where you can stretch your legs and lie comfortably, the rest of their seats won't allow it. You would have to put your legs on the side, and if you are tall, you will have to lie with your legs bend. Doesn't evoke an idea of a comfortable sleep.
I'd love to see an Asian version of La Compagnie, though even that airline had to learn massively from mistakes in a very, very lucrative market. The few seats generally operating to the Maldives are quite high-yield, so I can imagine they might be able to fill seats to Riyadh? I'm sorry, I'm not an expert, but there's no way they'll fill seats to Munich and Zurich if the plane's refueling in Dubai.