Luxury travelers shell out $32,000 for posh three-room flying suite

The Residence, as one airline calls its over-the-top ultra-luxe offering, will be available on New York-Abu Dhabi flights starting in December.
JUL 30, 2015
By  Bloomberg
Even at $32,000, people are lining up to book Etihad Airways PJSC's three-room suite between Abu Dhabi and New York. The Residence, as Etihad calls its over-the-top luxury offering, will be available on New York-Abu Dhabi flights in December when the airline puts an Airbus A380 superjumbo on the route instead of a Boeing 777. The living room, private bathroom and two-person bedroom are separated from other passengers in the nose of the doubledecker jet's upper level. A private butler, who comes standard with a Residence fare, took visitors on a replica of the suite Monday at the Global Business Travel Association convention in Orlando, Fla., and noted that the shower is big enough for two people at a time. “We have experienced an overwhelmingly positive response to the Residence within the U.S. — beyond our expectations, in fact,” Etihad Chief Executive Officer James Hogan said Monday in Orlando. “We are seeing healthy forward bookings.” Showing off the mockup and talking up U.S. demand for the Residence offered Etihad a respite from its feud with the three largest U.S. airlines. American, United and Delta airlines have complained to U.S. officials that Etihad and other Persian Gulf carriers are using state subsidies to compete unfairly, an assertion that Etihad, Emirates and Qatar Airways Ltd. deny. SIX YEARS Etihad spent six years developing the Residence and has deployed it on A380s on overseas routes, such as Abu Dhabi to London. New York will see the ultra-luxe offering starting on Dec. 1. The airline sold its first New York Residence ticket within hours of announcing the switch to A380s in March. An Etihad spokeswoman, Katie Connell, declined to give specifics about how many Residence fares had been sold on New York flights. For the foreseeable future, though, the suite will remain very exclusive airborne real estate. The Residence is offered only on Etihad's A380s, and the airline has only ordered 10 of those from Airbus Group SE. There are no plans to offer the service in the U.S. outside of New York, Mr. Hogan said in an interview. Etihad's Persian Gulf rivals are upping their luxury games as well. Emirates, the region's largest carrier, is developing a more-exclusive first-class offering featuring a bedroom concept. Qatar Airways has its own double-bed cabin in the works. The competitors' efforts won't require Etihad to make any changes in the Residence, Mr. Hogan said. “There's nothing like it.” Selling the one Residence booking available on Abu Dhabi-New York flights would be a revenue haul equivalent of about 26 of Etihad's “economy saver” seats on that trip, based on prices from the airline's website for December. The cheapest of those tickets lists for $1,225.

Latest News

The 2025 InvestmentNews Awards Excellence Awardees revealed
The 2025 InvestmentNews Awards Excellence Awardees revealed

From outstanding individuals to innovative organizations, find out who made the final shortlist for top honors at the IN awards, now in its second year.

Top RIA Cresset warns of 'inevitable' recession amid tariff uncertainty
Top RIA Cresset warns of 'inevitable' recession amid tariff uncertainty

Cresset's Susie Cranston is expecting an economic recession, but says her $65 billion RIA sees "great opportunity" to keep investing in a down market.

Edward Jones joins the crowd to sell more alternative investments
Edward Jones joins the crowd to sell more alternative investments

“There’s a big pull to alternative investments right now because of volatility of the stock market,” Kevin Gannon, CEO of Robert A. Stanger & Co., said.

Record RIA M&A activity marks strong start to 2025
Record RIA M&A activity marks strong start to 2025

Sellers shift focus: It's not about succession anymore.

IB+ Data Hub offers strategic edge for U.S. wealth advisors and RIAs advising business clients
IB+ Data Hub offers strategic edge for U.S. wealth advisors and RIAs advising business clients

Platform being adopted by independent-minded advisors who see insurance as a core pillar of their business.

SPONSORED Compliance in real time: Technology's expanding role in RIA oversight

RIAs face rising regulatory pressure in 2025. Forward-looking firms are responding with embedded technology, not more paperwork.

SPONSORED Advisory firms confront crossroads amid historic wealth transfer

As inheritances are set to reshape client portfolios and next-gen heirs demand digital-first experiences, firms are retooling their wealth tech stacks and succession models in real time.