American to Bring Back In Seat Video Just As It Finishes Removing the Last One


American’s transition to a premium airline took another very big step forward today as it has decided to reverse course. Not only will the airline be bringing back in-seat video on the domestic mainline fleet — eventually — but it is also going to add more extra legroom seating.

This move to put screens in each seat is symbolically very important, even if the timing is rather odd. After all, the airline is just now getting around to removing the screens from its final pre-merger A319s, the last narrowbodies that had them. US Airways had no screens, but American did, and as we all know, the new American adopted the US Airways strategy.

American had stuck to that plan to be a lower-cost, lower-frills network carrier for years. As financial results continued to sag, it finally changed its tune, suddenly deciding it wanted to be a premium network airline like Delta and United. It has already made some moves in that regard, pouring money into lounges, improving coffee and liquor, and refitting some narrowbodies with more premium seats. But nothing is going to be as visible as adding back in-seat video.

I’ve talked about this over the years, and originally, I didn’t see a need for seatback screens on domestic flights. But over time, I waffled, and to this day, I still waffle. But increasingly I see the value. It is a much more premium look and feel for travelers. Boarding an American aircraft is a stark reminder that sitting in coach on that airline feels more like flying Frontier than it does flying United, Delta, or JetBlue. Screens have become the most visible sign that you are flying on a full-service airline.

Obviously the goal is to justify the screens by gaining share, personalizing the experience, and improving revenue… all that good stuff. But there is a monetization angle as well that Delta and United have pursued. Free wifi gets the airline your data, and then there’s a screen right in front of you which the airlines can use to advertise whatever they want. This hasn’t been wildly successful yet, but we are just scratching the surface. United has set up Kinective to do that work. American will soon learn, if it hasn’t already, that adding seatback screens is now a whole lot more than just putting a screen on a seat.

But listen, I want to temper your excitement. Don’t expect to see this on your airplane tomorrow. The release says that new deliveries won’t even see seatback screens until 2028. Retrofits were somewhat less clear, but I get the feeling 2028 is the timeline on those as well. And when will it be done? “Early next decade” is what American says about the entire mainline narrowbody fleet. That is very far away. What I don’t know is how that will be phased in.

For example, the A320 fleet is down to only 48 aircraft, and 44 of those are more than 20 years old. (The newest of the other four is 16.) With such a long timeline for installation, I think it’s safe to bet this fleet won’t get the screens before it retires. So is it possible most of the fleet will be done quickly, but there will just be some quirky outliers until retirements are done in the early 2030s? Maybe, but I did not hear back from American with an answer.

Beyond adding back screens, American is also going to add more premium seats onboard. What that means isn’t entirely clear. We do know that American says about 25 percent of its narrowbody seats today are premium (meaning extra legroom coach or better), and that number will climb to 40 percent.

Some of this comes in the form of already-announced retrofits to existing aircraft like the A319s and A320s. We will also see what I expect to be an extra row of First Class added to the A321neo fleet, raising it from 20 to 24. The airline has also now confirmed that the B737-10 MAX will have 24 First Class seats when that airplane shows up.

American is also going to fix a long-standing problem by adding more Main Cabin Extra seating to its fleet. The details weren’t given at all, but the release did say the airline would be “retrofitting the majority of the narrowbody fleet to expand the number of MCE seats.”

This has been a problem for ages. Look at the A321neos. Everyone has 20 in First Class, but American has only 35 in Main Cabin Extra while United has 57 in Economy Plus and Delta puts 60 in Delta Comfort. Or look at the B737-800 where everybody has 16 in First Class. In Main Cabin Extra, American has 24 while Delta has 36 in Delta Comfort and most of United’s fleet has 54 in Economy Plus.

So yes, American is again playing catch-up to the other airlines it wants to emulate. This requires spending a fair bit of cash on putting all-new seats onboard, and there will presumably be fewer seats overall thanks to these expanding premium cabins. That is a big change in strategy.

But for now, American is still just paying the price of admission. It’s necessary and helpful, but I’m really waiting for the eventual timeframe when American starts innovating on its own instead of just copying everyone else.

Get Cranky in Your Inbox!

The airline industry moves fast. Sign up and get every Cranky post in your inbox for free.

Brett Avatar

11 responses to “American to Bring Back In Seat Video Just As It Finishes Removing the Last One”

  1. Eric R Avatar
    Eric R

    So is it safe to say the Oasis initiative was really a Mirage?

    1. SEAN Avatar
      SEAN

      Perhaps. I’m surprised they aren’t bringing back lazerdisc players & turntables for additional entertainment options beyond the screens themselves.

  2. SandyCreek Avatar
    SandyCreek

    What’s the best innovation opportunity that AA has? As someone who now flies some transcon, I feel like American has stopped capitalizing on the (free!) domestic meal service in Econ they run for a long time. Small as the market is, I would like to see them invest more in inflight food service, both in newer snacks and for-purchase meals on shorter flights, and complimentary ones on longer flights.

  3. SEAN Avatar
    SEAN

    Perhaps after reintroducing seatback screens, they could add lazerdisc players or even turntables for even more entertainment options/s.

  4. Anon Avatar
    Anon

    More Room Throughout Coach ?

  5. Matt D Avatar
    Matt D

    Only tangentially related, but I take it that the 319 and 320 are falling out of favor, kind of like how if it wasn’t for Southwest, the MAX7 probably would’ve been sent to the scrap heap (which I was expecting)?

    That seems to be a curious gap in the market. There is, at least empirical observation on my part, little to no demand for planes in the 90-150 seat, give or take market, which all three of those fall squarely into.

    The Jungle Jet is what? A 78 seater? That one is a huge hit. After that, demand for anything doesn’t really pick up until you get to right around the 175 and up size. That’s where the MAX 8, 9, and 10 and the 321 enter the picture.

    And then demand drops off again leaving another hole right around the 200-250 mark, which is where the 757 was and the 787-8 is. Also, two planes that have mostly fallen out of favor.

    And it picks up again at 275 and up.

    Gone is the variety.

    I get that it’s about “economics”. But can someone give me a little more granular explanation on what specific aspects of economics favor almost the entirety of the worlds airline fleet falling into just three sizes?

    Anyway, I know that most of this isn’t really germane to the main topic. And for straying, I apologize. But since you kind of mentioned it in passing, I was just wondering.

    1. See_Bee Avatar
      See_Bee

      Trip cost vs seat cost. The trip cost is about the same whether the plane is a ~120-130 seater vs ~180. The pilots are still mainline rates and maybe only need 1 more FA. So you can spread the costs over many more seats

      There is probably also an element of the industry competing less on schedule than in the past, so frequency, which requires smaller gauge, is less preferred vs the better unit economics

  6. See_Bee Avatar
    See_Bee

    This is clearly admitting defeat after pounding the table for the last decade that TVs were not important. Zero foresight from management on not only the premium positioning but also the ability to monetize – UA & DL nailed this one

    Why shouldn’t heads roll at AA HQ for this? (More than what Cranky detailed yesterday) I recall Dougie was a big proponent for getting rid of TVs, but surely there are others. Not only has this set AA back in current financial performance, but it’s going to continue into the 2030s until the retrofit is complete

  7. emac Avatar
    emac

    Next up: wholesale policy changes plus huge buyouts to take out apathetic front line employees, and huge technology investments to make the app and website serviceable.

    To the question of “how could they actually innovate,” that’s a really hard one. Maybe intentionally make AAdvantage more valuable for earning and redemption than the DL or UA programs.

  8. Exit Row Seat Avatar
    Exit Row Seat

    Most PAX have their own phones or laptops and parents bing tables for their kids. Would have been a lot less expensive to follow the Southwest model which streams a select group of movies, TV shows, etc, for free to your device. You would still need to watch an ad before the entertainment begins. Most domestic flights are just over two hours long anyway.
    Save the IFE for the wide body jets and domestic 1st.

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.