Thai Airways has quietly launched a luxurious and unusual premium economy product: fully lie-flat beds, which previously sold as business class seats.

Dubbed "premium economy plus", the new offering has already debuted on select regional routes from Bangkok to Chennai, Dhaka, Hyderabad, Jakarta and Kathmandu. What makes this announcement particularly noteworthy is that Thai Airways isn't installing new seats – instead, it's rebranding existing business-class hardware on recently acquired Airbus A330-300s that formerly flew for Virgin Atlantic.

The aircraft in question were leased from CDB Aviation in January 2024 and feature Virgin Atlantic's original cabin configuration: 31 Zodiac UCS3 lie-flat "Upper Class" seats arranged in a 1-1-1 herringbone pattern, alongside 48 standard premium economy recliners (2-3-2) and 185 economy class seats. Industry insiders have long known these Virgin Atlantic herringbone seats as "coffins" due to their narrow width and enclosed feeling – a nickname that hints at why they're no longer considered competitive in today's business class market. While the seats may be dated by business class standards, they still offer impressive specifications: 20 inches of width, a fully-flat sleeping surface, 11.1-inch HD touchscreen displays, and both universal AC and USB-A power outlets.

This creative reclassification appears to be part of a growing industry trend toward "unbundling" premium cabins – airlines slicing their cabins ever finer, from "basic economy" to various premium economy options and even "business lite" concepts. Delta Air Lines has previously floated the idea of a "basic business class" offering lie-flat seats without perks such as checked baggage and lounge access.As Business Traveller suggests: "The rebrand could help Thai monetise legacy lie-flat seats on routes with limited premium demand without incurring the cost of offering a complete business class service."

Thai Airways has provided limited details about the service elements of Premium Economy Plus, mentioning only "dedicated check-in" and "premium amenities." There's no confirmation whether passengers will receive business class meals or just enhanced premium economy dining. Interestingly, the airline notes that amenity kits – which are standard in their regular premium economy cabin – will not be available on Premium Economy Plus flights to Dhaka.The strategic rationale appears straightforward: these routes – Bangkok to destinations like Dhaka and Kathmandu – have limited demand for full-priced business class tickets. By selling business-class seats at a premium economy plus fare level, Thai can fill more premium real estate without incurring the costs of a full business class service.

While this new approach to cabin classification is certainly innovative, it's unclear whether Thai Airways plans to extend the Premium Economy Plus concept beyond these ex-Virgin aircraft.