All-business class flights – why is it so hard for airlines to make them work?

Over the years, many airlines have attempted (and failed) to make the all-business-class model work. Although the concept gained momentum in the early 2000s, with several such carriers coming and going in just a handful of years, the model has more recently fallen out of favor with airline entrepreneurs seeking to carve a niche for themselves in the cutthroat international airline business.

But why has the concept been so hard to make a success out of? And why have a couple of companies seemingly made it work for them while so many have not? AeroTime delves into the history of all-business class airlines, identifies those that have come and gone over the years, and examines just why it is so hard to make this model work.       

What is the concept?

If one goes back far enough in commercial airline history, air travel was dominated by airlines offering an ultra-luxurious travel experience. Indeed, in the early days of commercial aviation, air travel was exclusively the reserve of the ultra-wealthy who were willing to spend vast amounts of money simply to fly in luxurious surroundings.

Meals served on bone China with white linen, cabins that looked more akin to ocean liners rather than aircraft, with beds, bars, and smoking lounges, and almost as many crew attendants as there were passengers, were all attractions that airlines used to lure the well-heeled into the air for the first time. This model stuck around for years, even into the 1950s, before mass air travel became more commonplace with the introduction of economy class travel, making air travel more accessible to many.

Fast forward to today, and it is commonplace to find a modern long-haul airliner to offer up to four cabins of choice for passengers – first class, business class, premium economy, and economy. While first class may have had its heyday, with many carriers now winding down their first class offerings, the rise of premium economy (offering passengers an enhanced on-board product at a lower price point than pure business class) has been little short of remarkable in the past two decades.

EmiratesIn the modern day, first class has largely given way to an enhanced business class on many airlines, with many international carriers making the bulk of their profits and handing over large amounts of real estate on aircraft to business class. Companies actively compete by trying to offer the best business class in key markets, with airlines such as Qatar Airways and Emirates leading the charge for who can offer their business class passengers the most opulent of experiences, regardless of the length of flight.

Simply put, economy class and premium economy class passengers cover the operating costs of the flight itself, and with first class scaling back, business class is where the bulk of the revenue is made. It is therefore easy to see why airlines invest so heavily in their business class products to ultimately improve their bottom lines.

Given all that to be the case, it is relatively easy to see the allure of eradicating all other classes of travel in favor of offering an exclusively all-business class configuration. However, while launching an all-business class airline may appear to make simple economic sense, experience has shown that the reality is hugely different     

Traditionally, the airlines that have attempted to make a mark in the all-business class arena have entered a highly crowded marketplace where legacy carriers dominate. Additionally, where such carriers may have offered an enhanced product at a cheaper airfare than their competitors, there have been a blizzard of reasons as to why they still could not make the concept work and have gone out of business as a result.

EtihadThe range of carriers that have employed an all-business class product offering over the years has been extensive. From a relatively small US-based regional operator to a major Asian airline operating what was then the longest commercial flight in history, no airline has lasted the course, with the possible exception of two companies that are in existence today, trying hard to survive and thrive while so many others have failed.

If we take a look through the list of carriers that have tried but failed to make the all-business class model work, we can see the diversity of the airlines that litter the landscape of this seemingly lucrative but otherwise harsh business environment.

All-business class airline failures

One of the early pioneers of all-business class air travel was Midwest Express, a Milwaukee-based airline that was originally set up by the Kimberley-Clark Corporation in 1948 as an in-house carrier for its executives. The airline later became a scheduled passenger airline in 1978, offering its Douglas DC-9 fleet configured in an all-business class configuration on passenger flights around the northeast and central USA.

The airline found a niche in the markets it served until 2001, when US business class travel was hugely impacted by the September 11, 2001, terrorist attacks. With losses mounting, the airline diversified and began offering economy class cabins on its longest routes to the US West Coast and Florida, while the freshly cooked executive-class meals that were served on its flights up until that point (which the airline was renowned for) were discontinued in favor of a buy-on-board product.

Sunil Gupta / Wikimedia CommonsBy 2007, having changed from its original model completely, the airline was suffering hugely from increasing losses, combined with stiff competition from local rival Northwest Airlines and the growth of low-cost airlines such as Southwest and AirTran. At the start of 2008, with its all-business class model now hugely diluted, the airline was so weakened that it was eventually taken over by a consortium that included the parent company of Northwest Airlines. On January 31, 2008, Midwest Airlines ceased trading under its own name, with its operations being merged into the larger airline’s network.

Undeterred by the financial troubles of Midwest Express and the fallout from the September 2011 attacks, two US-based all-business class airlines would start up, although this time, tackling the highly competitive US-UK trans-Atlantic market.   

In 2005, US carrier MAXjet Airways commenced operations between New York-JFK  (JFK) and London-Stansted (STN) airports using a Boeing 767-200. With its target audience being ‘cost-savvy’ business passengers and aiming to capitalize on corporate travel budget cuts that followed 2001, the airline offered an onboard product that was pitched somewhere between business class and premium economy with fares that undercut competitor airlines’ business class fares.

Bryan Correir / Wikimedia CommonsFacing stiff competition on its flagship transatlantic route between London and New York, MAXjet decided to diversify from its core route structure and acquired another four aircraft over the next two years to begin new services from London-Stansted to Las Vegas and Los Angeles. However, the airline faced an uphill battle from the outset to fill its planes and to attract enough high-yielding traffic to cover its costs.

Additionally, for reasons set out in ‘Why is all-business class so tricky?’ below, the huge competition on the London to New York route proved to be too much for MAXjet to make a sustainable amount of revenue. The airline eventually filed for Chapter 11 bankruptcy in December 2007 and ceased operations with immediate effect.

Not long after MAXjet arrived on the all-business class scene, it was swiftly followed by an almost carbon copy airline in the form of EOS Airways. Flying all business class Boeing 757-200s across the Atlantic, EOS commenced operations in October 2005, curiously going head to head with rival MAXjet on the London-Stansted to New York JFK route. Again, pitching itself as a cut-price all-business-class carrier, EOS planned to grow with more transatlantic routes, including New York to Paris and London to Newark, while growing its narrowbody fleet of 757s to six aircraft.

Balazs Pinter / Wikimedia CommonsEach aircraft was configured for just 48 passengers rather than around the 220 passengers that could be accommodated by the type in a single-class layout. However, competing against the likes of MAXjet as well as all the majors on the London to New York route became too much for the airline in terms of mounting losses, and the airline ceased operation in April 2007, less than two years after beginning flights.

The next company to try and fail to master all-business class flying was the UK-based company SilverJet. Commencing operations in January 2007 and flying Boeing 767-200s between London-Luton Airport (LTN) and Newark-Liberty International Airport (EWR), the airline quickly expanded to four aircraft, and daily flights between London and Dubai followed.

However, the operation struggled to make money from the outset and was beset with financial issues. Despite an $8.4 million loan being secured to keep the airline afloat at the start of  May 2008, an immediate drawdown of $5 million was delayed, and the airline was forced to stop flying, with shares in the company being suspended on the London Stock Exchange. At the end of May 2008, just 16 months after operations began, SilverJet was no more, with its four aircraft grounded and all future bookings cancelled.

Aero Icarus / Wikimedia CommonsThe last of the carriers that attempted to operate all-business class transatlantic flights was L’Avion of France. The company’s original name of Elysair was changed when the company realized that the name L’Avion (meaning ‘the airplane’) resonated better with French and English speakers, who the new airline wished to attract. Just like MAXjet and EOS that had come and gone before, L’Avion attempted to break into the market between Paris and New York, competing against the national French carrier Air France as well as legacy US carriers.

L’Avion used a pair of Boeing 757-200s configured to carry 90 passengers in an all-business class layout. Like SilverJet, L’Avion commenced flights in January 2007 between Paris-Orly Airport (ORY) and Newark-Liberty International Airport, with plans to expand to other points in the US and to the Middle East.

By 2008, L’Avion had two Boeing 757s and around 100 employees. However, with the airline finding it hard to compete against larger, more established carriers, the owners of the carrier sold out to British Airways, which, under new EU rules, had set up Paris-based Open Skies, its own transatlantic Boeing 757 operator, and arguably a competitor of L’Avion with its own business class offering.

Kambui / Wikimedia CommonsOperations of the two airlines were merged in April 2009, with both airlines continuing to operate under the Open Skies banner. The Open Skies brand disappeared in 2018 as the airline became the basis for a new International Airlines Group budget carrier to be called LEVEL.

Others who tried all-business class

While the airlines mentioned above all tried but ultimately failed to make all-business class work, there is a handful of others that have attempted to make the model work, but for various reasons, have withdrawn from the market before it cost them too much. These airlines, which dabbled with the model, tend to be legacy carriers who dipped a toe in the all-business class market as a side project but withdrew, instead relying on their core operations to serve an existing and well-established market.

Singaporean flag carrier Singapore Airlines set the trend in this particular field when, in 2004, one of its ultra-long-haul Airbus A340-500s made history by flying the longest route in the world from Singapore to Los Angeles non-stop. The journey took 14 hours and 40 minutes to complete, flying 14,093 km.

Udo K. Haafke / ShutterstockThis route was also the predecessor to Singapore Airlines’ flight from Singapore to New York, which became the longest commercial flight at the time, covering 9,534 miles (15,254km). The uniqueness of this service is that the A340-500 was configured for just 181 passengers in a spacious layout featuring a 100-seat, all-business class cabin. Singapore Airlines eventually cancelled the special route in early 2013, citing a lack of revenue, replacing the service with a more traditionally configured A340-500 featuring an economy class. The service had struggled to find year-round demand with just business class, and the airline cut its losses by dropping the unique service.

Other airlines that have tried and failed all-business class only routes are British Airways with its London-City Airport (LCY) to New York JFK service operated by two specially configured Airbus A318 aircraft with just 32 business class seats. Although the outbound leg to JFK would make a short refuelling stop in Shannon, Ireland, the return flight could make it directly without stopping. The stop in Shannon also allowed the passengers to pre-clear US customs and immigration, allowing them to effectively enter the US as domestic passengers upon arrival in New York.

Ryan Fletcher / ShutterstockThe flights stopped in 2020 as a result of the COVID-19 pandemic, which caused business travel demand to collapse, making the expensive service unprofitable. The service needed to be almost full to break even, which was difficult without the demand behind it. The airline also decided to retire its small fleet of two Airbus A318, due to operating cost challenges making a return to the route impossible. 

British Airways took the view that with its numerous daily flights from London-Heathrow to New York, its customers already had ample choice between the two cities, while the slots at JFK could be used by bigger BA aircraft with much larger business class cabins.

Two others worth mentioning are the daily Qatar Airways all-business class flights between Doha and London-Heathrow operated by an executively configures Airbus A319. These flights, each of which seated just 40 passengers, ran between 2014 and 2016, but were eventually replaced by a Boeing 787 Dreamliner due to slot constraints at Heathrow, with the airline, like BA, realizing that the use of larger aircraft was a better use of the limited slot capacity, especially if it used an aircraft like the 787 that seated at least 40 passengers in business class.

Curimedia / Wikimedia CommonsOne last example of an airline that began operating all-business class services but then switched away from this model is relative newcomer BermudAir. The airline began life in September 2023, operating flights from Bermuda and the Caribbean Island of Anguilla to points in the eastern US. Initially, its fleet of  Embraer E175 regional featured a single-class all-business class configuration, and only sold 44 seats on each flight, affording customers the benefit of additional space.

In October 2023, just a month after launching, the airline announced that its aircraft would be reconfigured with a dual-class cabin layout of 88 seats, switching away from the all-business class model.

BermudAirAll-business class successes

Only two business-class-only airlines are currently operating today – France’s La Compagnie and Maldivian luxury carrier BeOnd. Both carriers aim to offer an enhanced customer experience, offering all-business class flights on medium and long-haul flights. The airlines strive to deliver a passenger experience as if flying on a private jet, rather than a commercial airline.  

La Compagnie is based in Paris, France. Interestingly, La Compagnie does not use Paris-Charles de Gaulle Airport, where it would be in the backyard of French flag carrier Air France. Instead, it opts to operate flights from Paris-Orly Airport (ORY), meaning that its passengers can flow through a less busy airport and access the aircraft quickly, with passengers perceiving it as receiving a higher-end level of service.

La Compagnie flies a small fleet of narrowbody aircraft across the Atlantic. Like EOS and L’Avion, the airline previously operated the Boeing 757 on flights between Orly and Newark Airport, replacing them in 2019 with the Airbus A321LR, of which it operates two examples. According to SeatGuru, these planes are operated in an all-business class featuring 76 flat-bed seats in a 2 by 2 configuration.

Markus Mainka / ShutterstockGiven its small fleet size, La Compagnie’s route network is limited, with Paris to New York being its mainstay. However, between March 2025 and December 2025, the airline has also operated Milan to New York and Nice to New York. La Compagnie used to operate flights between London Luton and Newark Liberty. However, this route underperformed and was axed when Britain left the European Union.

Given that LA Compagnie has been operating flights since 2014 and celebrated its tenth anniversary in 2024, it is safe to say that the airline has survived longer than any of the all-business class ventures that have gone before in the modern age.

Maldives-based BeOnd operates a fleet of A320 family aircraft in a premium configuration. The carrier’s single Airbus A319 carries just 44 passengers, while only the other airplane, an Airbus A321, accommodates 68 passengers, both in a luxury all-business class configuration. Unlike La Compagnie, BeOnd focuses on carrying wealthy passengers to the Maldives, though a smaller fleet of medium-haul narrowbodies, although given their limited range, refuelling stops in Dubai are required to certain European destinations such as Munich, Zurich, Milan, while the company also serves Riyadh in Saudi Arabia.

BeondGiven how recently the airline began operating scheduled passenger flights (August 2023, the airline appears to be faring well in a tough, highly niche market. In 2024, BeOnd sold more than 10,000 premium tickets and expects to double that number in 2025 as demand for premium leisure travel continues to grow. According to the airline’s website, “beOnd is on track to operate 28 aircraft to 50 destinations by 2030, creating more than 2,000 jobs in the Maldives as part of its expansion.”

Marking the carrier’s second anniversary of acquiring its AOC in August 2025, Tero Taskila, Chairman and CEO of beOnd, said, “Our AOC gave us the licence to take flight, and in just two years, we have built a strong foundation. The Maldives is at the heart of our journey, and we are proud to bring more premium travellers here while creating long-term opportunities for Maldivians. Our next phase will expand our fleet, routes, and people while continuing to deliver a premium leisure experience.”

BeondWhile the underlying experience is similar on both La Compagnie and BeOnd, and they both operate in the all-business class space, they target vastly different market segments – namely, high-end regular business class passengers and ultra-wealthy leisure passengers, respectively. While BeOnd has some way to go to match La Companie’s 11 years of service, it will be fascinating to watch whether BeOnd reaches its target of 28 aircraft in its fleet within the next five years.

Why is all-business class so tricky?

Given all of the examples of failures above, it would be easy to summarise that the all-business class market is a tough one to crack. Yet two airlines appear to be making it work for them. So why did some of the early disruptors fail so spectacularly in this arena?

Firstly, if we consider EOS, MAXjet, SilverJet, and L’Avion, the markets into which they entered (London/Paris to New York), enjoyed high demand but were also swamped with scheduled airline capacity. For example, in August 2025, British Airways operated eight daily flights between Heathrow and New York, while American Airlines operated around 70 transatlantic flights to several European destinations in the same month.

With legacy airlines offering such high frequencies, it is tough, if not impossible, for any newcomer to compete. Business travelers in particular look for flight options, so if a meeting runs over, they know they can still get home on an alternative flight. When paired with airport lounge access, loyalty program rewards, and other benefits such as limousine services to and from the airport, then, as a minimum, any newcomer would have to offer the equivalent to compete.

EQRoy / ShutterstockSecondly, the economies of scale are simply not there for an all-business class carrier that has just a small handful of aircraft. This is true regardless of whether the passenger experience is exemplary and the aircraft flies at a 100% load factor every flight. Operating on a small scale means all the fixed and variable costs of the entire airline land on just the small fleet rather than being spread over many aircraft and many routes.

Additionally, if you have just two aircraft and one suffers a technical fault, then you either need to cancel the service and frustrate a planeload of passengers or sub-charter an inferior aircraft from another carrier to get your passengers home at huge expense. The risks involved in an operation involving a small fleet, as well as the costs, are huge. Therefore, the need to maximise your loads and fill the planes as often as you can on every flight is paramount to long-term survival. These are all faults that the previously named airlines suffered from.

A third element is that large airlines have the capacity and ability to cut fares on certain routes at certain times. This tactic has been used many times in a whole range of industries to sink plucky upstarts that challenged the status quo. With EOS and MAXjet, a factor in their downfall was other transatlantic carriers dropping their business class fares to ensure that individual business travelers, as well as valuable corporate accounts, stayed with them rather than defect to the newcomer. Again, this is a competition that a new carrier cannot sustain for long, having to sell their own seats for as much as they can and at as high a load factor as they can just to cover their basic costs.

Dr Ajay Kumar Singh / ShutterstockGiven the examples above, the secret to making all-business class work in the current economic climate would seem to be to start small and grow slowly, if at all. Secondly, find your niche and stick to it while avoiding direct competition from large carriers, if possible. Thirdly, find a suitable modern aircraft type for your operation whose reduced operating costs can be covered with a lower load factor, and finally market your service appropriately to your target audience appropriately so they know of your presence, and give them reason to try your airline over a perceived and more established competitor.

Conclusions

While there is no “one-size-fits-all rule for all” for business-class airlines, history shows that it is an extremely difficult market to break into and succeed, regardless of how well-funded you think your airline is. While the carcasses of failed all-business class airlines litter the aviation history books, the fact that there are two relatively successful carriers in the space, managing to survive, may entice others to try it with their own version.  

ATRIndeed, at the Paris Air Show in July 2025, Air Tahiti announced that it intends to operate one of its newly ordered ATR72-600 turboprops in an all-business-class configuration, linking the islands of the French Polynesian archipelago with a new VIP-only service. The aircraft will feature ATR’s top-level ‘ATR HighLine’ premium class cabin, which the planemaker was promoting at the Air Show.

The all-business class model has become less popular than it once was, given how the model’s casualties demonstrated to their detriment how difficult it is to make money and survive in this niche sector of the industry. Yet, with the likes of La Compagnie and BeOnd seemingly making a success of it, others may appear on the all-business class airline scene in the future. Only time will tell.

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