PREMIUM PROPERTIES
While the term premium economy may sound like an oxymoron, this class of upgraded service has been gaining momentum since it was introduced by Virgin Atlantic in the early 1990s recession to appeal to business fliers whose companies wouldn't let them buy business-class tickets. Not surprisingly, premium economy is the new favorite class in the current economy. At least 15 airlines now offer it, including recent converts Qantas, Japan Airlines, and Air France, which is phasing it in later this year. Sandwiched between coach and business, the service varies greatly from carrier to carrier and is priced accordingly—on airlines like Qantas, where the extra legroom can make a big difference on a transpacific trip, a seat can cost three times as much as one in coach, yet the airline reports that bookings are strong. In 2007, Virgin Atlantic expanded its premium-economy class from 32 to 62 seats per plane, and tarted up the service with wider leather seats—in response to what it called "off-the-charts" demand.

Air France is adding a premium-economy cabin this fall on its entire long-haul fleet, with the exception of its 747s. The cabins will offer upgraded entertainment, food, and other amenities, as well as a new seat that swivels on its base. At press time, Qantas was reconfiguring all its long-haul aircraft with its new premium-economy class, which will have a generous 42 inches between seats (versus 31 inches in coach). The service is already offered on flights to the West Coast and will be available on flights to New York by summer's end. Japan Airlines has also made room for the new class on planes flying between North America and Asia and, unlike most of the other carriers in this league, gives premium-economy fliers access to its club lounges.

These seats can be more than twice the price of coach, but even some thrifty travelers find them worth the added expense, since flying in premium economy allows them to arrive rested and ready to begin their travels without the day or two of recovery time usually required after a long flight in coach. "For me, it's a health issue," says Biyana Lemise, an investment adviser in New York who frequently travels overseas. "I feel so much better that it's worth the extra money."

FLYING UNDER THE RADAR
OpenSkies, whose planes have a 40-seat premium-economy class as well as 24 sleeper seats in its business class, and Virgin America are among a group of relatively unknown newcomers offering unparalleled value. The U.S. outpost of Richard Branson's travel empire, Virgin America was launched in August 2007 and now operates a fleet of 28 A320s and A319s to eight cities, including Boston, Las Vegas, Los Angeles, New York, and Washington, D.C. It offers a first-class section with fares that are typically well below what the legacy airlines charge, and with far superior amenities, and it also has a watered-down premium-economy class called Main Cabin Select, which gives those sitting in the exit and bulkhead rows free meals and drinks in addition to the added legroom. However, these seats are vastly overpriced for what you get: When I tried it on a recent Los Angeles-New York red-eye, the fare was four times what I would have paid for coach ($574 versus $129 one-way), and the six inches of legroom and free chardonnay and chopped salad hardly seemed worth almost $450. At press time, Virgin America still had no mileage-sharing program with Virgin Atlantic—though it does have its own awards plan.