Zodiac Aerospace, the seat manufacturer for United’s new Polaris Business Class seat, is in trouble. With labor issues threatening production schedules, United faces further delays in its Polaris retrofit program. Nevertheless, I contend United will not lose too much sleep over this setback.
The Problem
Zodiac is facing labor problems in the United Kingdom, primary assembly site for the United Polaris program–
In guidance issued Tuesday, Zodiac warned investors it was having “industrial issues” in the United Kingdom, and said the problems were causing “significant disruptions and delays.” Zodiac also makes seats in the United States, and that branch is operating normally, but that’s likely little consolation to United, which has said its seats are being manufactured by Zodiac Seats United Kingdom.
“We are not happy. Period.” United CEO Oscar Munoz said Tuesday at the J.P. Morgan Aviation, Transportation and Industrials Conference.
Of course United is not happy. It is not like United can just call B/E Aerospace and be penciled into their busy calendar. United’s proprietary premium class product is stuck in the hands of Zodiac and all United can do is what they are already doing — keep the pressure on:
We have plans that are dynamic at this point, and [Zodiac] is receiving lots of beneficial support from our management team every single day. We are working hard with them and with other suppliers to make sure that we can expedite our plan. Rather than just be unhappy, we’ve got people on site with the folks there to make sure that we can expedite and accelerate as much as we can.
Munoz uses “expedite” in consecutive sentences, underscoring that United will be the nagging customer who wakes up with Zodiac each day to ensure that at least it is given priority over others. In my experience, this works. While working for Star Alliance I had the opportunity to work with both B/E Aerospace and Zodiac and there are two things I can add. First, Zodiac’s issues are not recent (just ask American Airlines). Second, pressure works.
Why United Won’t Sweat It
Customers are a funny commodity. We see that United has plastered airports, magazines, and even popular TV shows with ads like this–
Many customers walk on to planes expecting the new product.
And many customers walk away thinking they have got it…
Twice recently I flew United’s old business class (which still has lie-flat beds) and heard passengers comment on how great the new seats were.
Lipstick on a Pig
United rolled out its new Polaris soft product on all longhaul flights last December and that action alone is buying it time. Passengers love the new Saks Fifth Avenue bedding and though the menus also represent a more modest change than initially imagined, at least the staple meal items have been given fresh crockery and new garnishes.
What I’m trying to say is that passengers in business class are just happy to sleep and United’s lie-flat beds — even the 8-across 777-200 version — will still do the trick. Bedding is now nice, meals are better, FAs are much more pleasant, and Wi-Fi available. Combine all those benefits and United has bought itself some time. Heck, some consumers are already under the impression (and happy) with United Polaris.
That doesn’t mean United has a competitive product right now — if we are talking about the seat alone — but combine all aspects of the business class experience and United is respectably competing.
CONCLUSION
Perhaps my theory will not bear out, but I have flown some beautiful brand new planes with spacious business class seats lately. In all honesty, I did not sleep any better on a reverse herringbone seat than in United’s denser configuration. I reject the notion United is going to lose market share for offering a lie-flat seat with better bedding than any airline I can think of in business class. The new seat is welcomed and necessary, but not so critical that this latest production delay will torpedo premium yields.
In my 1.5 million miles of United experience. it appears that United has little regard for the details and even less regard for their cattle, er, passengers. They will conitnue to waste money advertising a product that does not exist. Those poor suckers who pay up for Polaris only to find its the same shotty United business class they have come to know and loathe wont be back anytime soon. This is why I have been on a United boycott since 2012.
Sorry Matthew,
Your closing paragraphs puts you firmly in the United apologist bucket. As an AA loyalist I hold no ill will toward UA and am excited to see the addition to Polaris as it has the potential to raise the (service) game for all US carriers. (God know AA could use some motivation in this department). I’m also looking forward to giving Polaris a try to Asia at some point when it’s available and my schedule aligns with UA’s. That said – suggesting their 8 across is ok because it’s flat and you can sleep doesn’t work in my view. The amount of personal space is just not sufficient. I will not buy a UA business class seat until they update the density to 1x2x1. I strongly suspect I am not alone in this position. This will make upgrades easier for now – but it also means a much less competitive UA for quite a while longer.
Why doesn’t United take some of their newly minted (post-’08) bajillions of profit and simply outright buy Zodiac?
8 across business class is an utter joke. I have a hard time sleeping in their so-called Global/Polaris First and despise the lack of privacy in the middle seats. Soft service is marginally better in Polaris/F but lousy seats are a huge negative. United desperately needs the new seats.
I agree. While I love the new soft product Polaris items, their current long haul business seat configuration is a joke. I will actively avoid it until it’s updated.
Great post, Matthew. It really shows how soft product is just as important as hard product. Delta was ahead of the curve on this one: they may fly extremely old planes, but a brand-new interior with good service and most passengers could not know the difference.
I somewhat disagree. Like Mike, I am a former and recovering AA elite who holds no particular ill will towards United. However, UA can only play their marketing game so long before enough people bolt to cause profit margin erosion. I can tell you, as a true airline free agent, I’d happily consider a routing with the Polaris hard product after my brief trial with it. If it’s a choice between UA with a Polaris soft product and 8-across seating and a foreign carrier with a more competitive hard product, though? There’s zero chance I’m picking United.
To be fair, while their old seat is certainly not competitive (especially 8 across…), when you fly others like Lufthansa, who’s “new” business class still doesn’t feel competitive, I too have to wonder how badly they need a new product. They at least have consistency – whereas on American I’ve still ended up with the odd angled flat seat internationally (i.e. latin america). And getting back to Lufthansa, their current business class seat may be the flimsiest, least private, and least comfortable lay flat seat I’ve ever flown. Add that to the typically 80 degree cabin and it’s a nonstarter. I would hands down fly United business over Lufthansa any day (first class is a whole different conversation though…!).
While I agree that the 4 across center business seats on the 777 seem awful, I’ve never actually sat in them. If you get the window/side seating, the fact that those center seats are so packed in doesn’t really impact you. As, it seems, the odd flyer who prefers the rear-facing seats, I’ve had good luck getting those seats.
I’m impressed by how the Polaris seat design appears to have improved privacy and aisle access without removing any capacity. The statement “I won’t fly UA business until it’s 1-2-1” sounds like a toddler saying “I’ll just hold my breath until I get what I want!”. The new seats, even at 4 in the center, correct the problems with the current layout: all have direct aisle access, the increase the seat width from the current product, and offer much more privacy.