8 June 2026Business & Strategy
Air New Zealand CEO defends economy bunk bed strategy
Nikhil Ravishankar insists the airline's "Skynest" lie-flat pods are core strategy, not a marketing stunt, as bookable four-hour sleep sessions launch on ultra-long routes. The pods go live in November on Auckland-New York flights, priced at $400-495 per session for economy passengers only. Each aircraft carries six pods with full bedding service and USB power, targeting the 15-18 hour flight market where business class remains unaffordable for most travelers. Ravishankar frames Skynest as monetizing unused vertical cabin space while maintaining seat counts, potentially generating up to $11,880 per sector if fully utilized. The innovation builds on the airline's Skycouch success and positions Air New Zealand as a premium long-haul connector in an increasingly competitive ultra-long-haul market. Rising fuel costs will dictate rollout speed to other routes, making this a test of whether airlines can justify new micro-products between traditional classes.
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