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

Summit Financial, MassMutual boost advisor appeal with growth-focused tech
Summit Financial, MassMutual boost advisor appeal with growth-focused tech

Summit Financial unveiled a suite of eight new tools, including AI lead gen and digital marketing software, while MassMutual forges a new partnership with Orion.

SEC enforcement actions drop sharply, with focus shifting to investor fraud
SEC enforcement actions drop sharply, with focus shifting to investor fraud

A new analysis shows the number of actions plummeting over a six-month period, potentially due to changing priorities and staffing reductions at the agency.

MAI inks mega-deal with Evoke Advisors to form $60B AUM firm
MAI inks mega-deal with Evoke Advisors to form $60B AUM firm

The strategic merger of equals with the $27 billion RIA firm in Los Angeles marks what could be the largest unification of the summer 2025 M&A season.

Employees tapping retirement funds amid financial strain, led by Gen Zs
Employees tapping retirement funds amid financial strain, led by Gen Zs

Report highlights lack of options for those faced with emergency expenses.

LPL Financial on target to retain 90% of Commonwealth financial advisors, Wolfe Research analyst says
LPL Financial on target to retain 90% of Commonwealth financial advisors, Wolfe Research analyst says

However, Raymond James has had success recruiting Commonwealth advisors.

SPONSORED How advisors can build for high-net-worth complexity

Orion's Tom Wilson on delivering coordinated, high-touch service in a world where returns alone no longer set you apart.

SPONSORED RILAs bring stability, growth during volatile markets

Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today's choppy market waters, says Myles Lambert, Brighthouse Financial.