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Quest Means Business

Vance Defends Iran Deal, Warns Critics in Israeli Cabinet; Traffic Increases through Strait of Hormuz After Agreement; Hegseth Blasts NATO Allies for Staying Out of Iran Conflict. Seattle Set to Host Six World Cup Matches; Going from Class to Class in an Airbus Show Plane. Aired 4p-5p ET

Aired June 18, 2026 - 16:00   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.

[16:00:13]

RICHARD QUEST, CNN INTERNATIONAL HOST, "QUEST MEANS BUSINESS": Closing bell ringing on Wall Street. We've got one of those sort of days where the

markets -- they are all up, but some are clearly up more than others. You've got the Dow that's just up about nearly one percent, and the NASDAQ,

which is responding to other factors, Intel and oh, one, two and a one, and a one, two, three, four.

The trading is over. The NASDAQ has given back just a touch, but it is still up, the best part of two percent. Those are the markets and these are

the main events of the day.

The U.S. Vice President Vance says 12 million barrels of oil passed through the Straits of Hormuz overnight. Now, shipping companies fear they could

soon face tolls from Tehran.

Flights at Moscow's main airports were suspended after hundreds of Ukrainian drones caused chaos in the Russian capital, and we will go class

to class on an Airbus A350. I am going to show you how and what every price point for the future of travel.

Tonight, we are live in London. It is Thursday. It is June the 18th. I am Richard Quest and back in London, of course, I mean business.

Good evening.

Tonight, Donald Trump and the administration is defending its agreement with Iran and warning Israel to respect the peace process. Vice President

J.D. Vance says its uncertain if Tehran will negotiate in good faith, but that its certainly worth trying and technical talks will begin in the

coming days. The United States will take a holistic approach to whether Iran is honoring its commitments.

The Vice President also responded bluntly when he was then asked about criticism coming from Israel.

(BEGIN VIDEO CLIP)

J.D. VANCE (R), VICE PRESIDENT OF THE UNITED STATES OF AMERICA: To some of these Cabinet members in Israel who are attacking the President of the

United States, the other thing that I would say is that over the last three months, two-thirds of the defensive weapons that have protected your

homeland have been built by American hands and paid for by American tax dollars.

The problem for Israel is not Donald J. Trump and anybody in Israel who thinks their biggest problem is the President of the United States needs to

wake up and smell the reality of the situation that country is in.

(END VIDEO CLIP)

QUEST: Iranian state television has read a text message from the Supreme Leader saying that he authorized the agreement after getting commitments

that it would safeguard the Iranian nation and the resistance front. And so to the traffic through the Straits of Hormuz, which apparently is already

increasing, Vice President Vance said more than 12 million barrels of oil passed through overnight.

So we saw an initial price movement lower, and then Brent later turned positive. But you can see the way the day ended with both down just around

a third of a percent.

The issue now is the fee, a potential fee to transit the Straits of Hormuz that could come in the future. The text of the Memorandum of Understanding

between the U.S. and Iran says Iran will allow safe passage at no charge for 60 days only.

Iranian state media has only just announced the Persian Gulf waterway management authority will manage traffic through the waterway. The

government will cover the cost for the first 60 days.

Nic Robertson is in Zurich.

Nic, there is so much to unpack. I mean, in terms of the good news that the peace agreement or an agreement has been signed, there seems to be a

commonality of view on some core points, and then you end up with this very nebulous bit of what happens next.

NIC ROBERTSON, CNN INTERNATIONAL DIPLOMATIC EDITOR: Yes, and J.D. Vance defending what is in the MOU, essentially using the argument that President

Trump used yesterday, and he has used before, that if Iran complies with this and gets to the final part of the agreement after 60 days or however

many extensions there are, of all the talks across all those 14 points, then Iran does stand to economically benefit.

On the point of tolls, the Vice President was asked that in a press conference a few hours ago, and he said, on the point of that, Iran is

portraying it as it would just be Iran and Oman that would get to decide about the management or administration of the Strait of Hormuz area.

The Vice President said, actually, it is not just those countries, it is the other Gulf countries and he also went on to say that if, in essence, if

Iran does continue to try to push and exert tolls and take tolls and insist on tolls, then there would be no final agreement. And that final agreement,

of course, is where the big sanctions lifting comes.

[16:05:10]

This waivers lifting now to give temporary respite, but it would be the sanctions. So it has kind of broken it down and tried to answer all of

that.

But there is a fundamental hurdle I'd like to mention as well, but go ahead.

QUEST: Sure. Please do. No, no, no. No, I insist after you. After you, Nic, please.

ROBERTSON: Okay, so the little hurdle and the bump in the road was something else that J.D. Vance mentioned today when he was asked, well,

when are you going to go to Switzerland for these talks? Because now, it is talks led by political figures on either side, him on the U.S. side and

technical teams. That's how it is going to be expected to start tomorrow, it is expected to come tomorrow.

He was asked, well, are you coming tomorrow? And he said, well, I am not so sure. Hopefully this weekend.

So even at this stage, the clock ticking, 60 days ticking down, 59 days tomorrow, uncertain when this first round of talks will happen, it appears.

QUEST: I mean, these talks in these moments are always a little bit messy. But the level of uncertainty of what happens next, of what commitment has

been, what can I hang my hat on, in a sense, because that's what the oil markets are going to be trading on in the days ahead.

ROBERTSON: Yes and I think they're going to be doing what a lot of people are doing, particularly the gulf countries that want to export their

products out and make the money and drive those markets to a better place. They are going to be watching the reality on the ground, and the reality is

going to be 12.5 million barrels last night. How many will it be tonight? Where is the confidence level? Is the reality happening on the ground. And

I think, you know, you and I, we understand this because we are involved in it day-to-day. We know where to hang our hats.

But I think I was trying to guide somebody. I would say, let's wait a few days and see.

QUEST: I am grateful for you, Nic Robertson, thank you.

The U.S. Defense Secretary criticized NATO allies for not getting involved in the war with Iran, and then announced a review of U.S. Forces in Europe.

Peter Hegseth said it is intended to transform NATO into an Alliance focused on hard power and real deterrence and he said some countries will

fail the review, while others will pass with flying colors.

Fabrice Pothier used to be NATO's head of Policy Planning. He is now the CEO of Rasmussen Global Air.

Is this a sort of a veiled -- well, you made your bed. Now, you've got to lie in it, and we are not going to be nice about it.

I mean, it is hard to say what is -- it is a genuine bona fide review or is it eking out revenge for those who didn't join in?

FABRICE POTHIER, FORMER NATO HEAD OF POLICY PLANNING; CEO, RASMUSSEN GLOBAL AIR: Well, I don't think there is anything essentially new here. This is

something that has been out there for a good year and more clearly since the last ministerial in February, when the U.S. Administration

representative talked about NATO 3.0, which essentially meant less U.S. and more Europe.

I think the Europeans have slowly, but surely factoring this in, however, where we are right is I think Hegseth was trying to be a bit meaner and a

bit scarier, a bit like a schoolteacher who will deliver, you know, the marks, live on television during the Ankara Summit.

And I think this is the bully tactics that we have been seeing for the past years from this U.S. Administration and the Europeans are again, getting

ready even if there is a slight discomfort.

QUEST: Yes, but are the Europeans, from your soundings in Europe, is their view. Weve been here before. We will take it on the chin or now enough is

enough. You've been at this game before. Hegseth, you are not Donald Trump. If you want to do this, go ahead, but you'll take the consequences.

POTHIER: No, I think it is more -- there is a new sense of realism here in Europe where we need now to Europeanize NATO and the questions are much

more practical is like, how do we do that? And how do we do that at scale and at speed? So that within a few years we are able to do major European

operations in Europe without necessarily having U.S. support.

And this is really the kind of sense of urgency I think, that is now falling on European capitals.

QUEST: But that requires both increased spending, which many nations have agreed to do. It also requires greater political will. But perhaps the

biggest weakest link is political coordination on all of this.

Military coordination NATO is absolutely brilliant at, political coordination amongst the member nations can feel very dark sometimes.

[16:10:02]

POTHIER: Yes, and I don't think we are going to solve this by the Ankara Summit in the beginning of July. But I think there is an awareness we need

to defragment Europe when it comes to acquisition of key capabilities, and we need NATO 3.0., we need to think about the procurement 3.0. We need to

take more risk in buying things, even if those things are not necessarily going to be as perfect as the tomahawk cruise missile.

QUEST: All right, but give me the insiders' point of view, because you're well and truly plugged in. We've been at this for 18 months with versions

of threats coming from the administration.

You say, we need to do this. We need to do that. Are measures already being taken to actively improve the situation, or are we still just discussing

around the subject?

POTHIER: Well, look at the numbers. NATO Secretary General Rutte said it himself, we have seen a 20 percent defense spending increase over the past

year and look at Germany. I mean, Germany is the locomotive of this European defense surge, and now, Germany, by the end of the decade, will be

spending 165 billion euro a year.

So in a way, if Germany succeeds in doing this at scale and at speed, Europe will be in a good place. If Germany fails, we will be in a worse

place. So, I think it is happening. Is it happening fast enough and in a coordinated way enough? No, but I think there is now a new sense of urgency

you did not have even a year ago.

QUEST: I am grateful, Fabrice, you put it elegantly and eloquently for us and we now understand more. Thank you, sir.

So to Moscow, where the sounds of drones filled the skies as Ukraine launched its largest attack of the full scale war on Russia's capital.

(VIDEO CLIP PLAYS)

QUEST: This attack injured at least 17 people and caused disruptions throughout the city. It was certainly dramatic, as these pictures show.

Flights at all Moscow's major airports were suspended.

And this -- look closely. This shows the moment the drone -- a drone hit a Moscow refinery. Kyiv has been stepping up its attacks on Russian energy

infrastructure. The efforts have led to disruptions in fuel supplies in Russian-controlled Donetsk, among other places, and if you look at the

video from earlier this week, you can see large lines at gas stations.

Paula Newton has been following and watching the pictures. She joins me from New York. The effect -- the cause and effect. There will be a strong

response, one imagines, from Putin.

PAULA NEWTON, CNN INTERNATIONAL HOST AND CORRESPONDENT: A strong response from Putin, but what we really have to look for here is a strong reports of

shock from Russians themselves, in particular, Muscovites.

I mean, Richard, as a former resident of Moscow for several years, literally the refinery flipped its lid. Think about how frightening that

is. And it means that this Ukrainian war has now gone to the doorstep of so many Russians, but in particular, those that live in the capital.

And Richard, as you know, this is dacha season in these areas. They are trying to get out to their country homes, and yet they are wondering

whether or not that fuel rationing, the fuel shortages will come to large cities like St. Petersburg and Moscow as well.

And this is not unrelated, Richard, to what is happening with Iran or the G7. And the reason is that the G7 leaders were very clear, at least six of

them, that they wanted to make sure that Iran was out of the way so they could concentrate on this.

I want you to listen now to what Mark Carney told our Kaitlan Collins on Tuesday, in fact.

(BEGIN VIDEO CLIP)

MARK CARNEY, CANADIAN PRIME MINISTER: I think it is a game changer, not just for this situation, because it starts to take off. Certainly this

issue, but it allows us and this is what has happened in the meeting, to step back, look anew at Ukraine -- the Ukraine situation.

We had a very, very constructive conversation around Ukraine.

(END VIDEO CLIP)

NEWTON: He made it very clear to link the two and that's not just his opinion. It was the opinion around the table. Zelenskyy taking full

advantage of that and saying about these last attacks that if Ukraine is engulfed in flames, so will your Moscow be -- Richard.

QUEST: Right. But what do we think is the ability of Ukraine to repeat these sorts of attacks? So that, I mean, it is one thing to have -- to be

lucky, so to speak, and have a good night of attacks. It is another to continually put Muscovites under continuing fear.

NEWTON: They are getting better and better every day, not just on the short range, but these are mid-range and they are hitting St. Petersburg. They

are hitting Moscow. This was the largest attack of its kind, Richard, since this war began and Ukraine is promising to do it again.

[16:15:02]

More than that, Richard, they have the backing of the E.U. The E.U. will probably get another military tranche of hardware, especially those missile

interceptors to Ukraine by the end of the year and you had the E.U. policy chief saying quite bluntly today that Russia is on the back foot.

Richard, look, the message to Russia and especially Putin is clear. I want to be cautious, though, here and that does not mean that Russian

leadership, Vladimir Putin, will back down from this. In fact, we could just see an escalation, especially through these summer months.

QUEST: Paula is in New York and I am grateful. Thank you.

At least one U.S. city appears to be seeing fewer World Cup tourists than expected. This is Seattle, it says early hotel bookings have fallen short

of projections. The President of Business Operations for Seattle's major league team will join me after the break.

(COMMERCIAL BREAK)

QUEST: In Chicago, thousands of people turned out today for the ceremonial opening of the Obama Presidential Center. It cost $850 million and the

campus, it includes a museum that's dedicated to the 44th president and his groundbreaking political career.

Former presidents Bill Clinton, George Bush and Joe Biden attended the ceremony. President Trump, who has a long history of feuding with President

Obama, was left off the guest list.

The former president said he hopes the center expresses certain values that make democracy possible.

(BEGIN VIDEO CLIP)

BARACK OBAMA, FORMER PRESIDENT OF THE UNITED STATES OF AMERICA: A belief in the intrinsic dignity and worth of all people, and that no one is above the

law or beneath its protection. A belief in checks and balances in our government, and an accountability that comes with an independent judiciary

and a robust free press.

A belief that our military and law enforcement owe allegiance not to any president or political party, but to the people and our Constitution.

A belief in the peaceful transfer of power after the people have in every elections.

(END VIDEO CLIP)

QUEST: Sara Sidner is in Chicago. Sara is with me now.

I am guessing, President Trump wasn't wanted there and didn't want to be there anyway. But it isn't -- it is telling because these events are

traditionally bipartisan. It is a time when all presidents -- former presidents come together to honor the service of a former colleague.

[16:20:15]

SARA SIDNER, CNN ANCHOR AND CORRESPONDENT: Yes, and it is notable, but if you listen to the words of President Trump just several hours before

President Obama and this opening happened here, the Center for Barack Obama, he used the word stupid SOB when talking about the way in which

Obama did a deal with Iran, the JCPOA to keep Iran from having a nuclear weapon.

And so the vitriol that has been used by particularly by President Trump against the Obamas, whether it be against Obama or his wife, even putting a

video out showing them as monkeys, you can understand why the Obamas decided not to invite him.

All of the other living presidents were here, whether it be George W. Bush and the First Lady, his wife, or whether it be Bill Clinton or, of course,

whether it be Joe Biden and Jill Biden, all of them here beside him, jokes were made about all of them. There was even a song from Bono where they

included -- he included, all of the different years in which these presidents had the helm.

But you also had a real story here. It was -- to describe it would be to describe basically, they took you to church, but it was also a family

reunion. That's what the atmosphere was like here, because this is where Barack and Michelle Obama met. This is where they had children, where they

saw their children take their first steps.

This is the neighborhood where Michelle Obama grew up, and he said there is no other place in which this particular center could exist and they are

calling it a Center, not the Barack Obama Library, because it really is way more than a library. There are so many things here for people to do and

experience.

There is a garden where people can come, take a class and learn how to grow food and then cook their own food that they grow. There is a basketball

court, as you might imagine, President Barack Obama loves that.

There is a recording studio where you could come and learn how to make music, which it was very clear and has been throughout his presidencies,

that he loves music. And so we saw the most incredible array of musicians, from Stevie Wonder to Christina Aguilera to Jennifer Hudson. Jennifer

Hudson is from here. She sang the National Anthem and also talked about the impossible dream and sang the "Impossible Dream." You saw so much here.

And the message was very clear. One, don't look back to a bygone era. He said that in his speech, this is not a mausoleum. This isn't something that

I want you to think, oh, this is all in the past. He is like, I want you to see this and then look forward and do your best to make this a better

country, that the work is not done. It was a very clear message, and the other message was, let's get away from the divisiveness. Let's get away

from the hatred and the greed and the anger and the sort of political fighting -- infighting.

Let's try and look at the world together and try to figure it all out together to make a better, brighter democracy. That was the message here

today, over and over again.

QUEST: Sara, these presidential libraries and the various organizations that they then attach to, I suppose the most famous one, of course, has

always been the Carter Center. The rest of them all are involved in some shape or form with democracy and democratic values and this, that or the

other. Does this one stand -- seemed as if it is going to stand out amongst them, will test the test of time, if you like?

SIDNER: Yes and part of the reason for that is it isn't just a library. It is not just about the Obamas. They have included stories from people who

live on the south side of Chicago and people from around the world. They are stories to let you learn how things work and how we can come together.

But it is also a center where you learn things, where they want you to improve yourself and be able to do so here.

So it is a living and breathing center, not something that they want you to come in and go, oh yes, look at that history. Oh yes, I remember that. Or I

am just learning about this. They want this to be something where you literally get your hands dirty in the dirt of the garden here. So there is

a lot to see, obviously, but there is also a lot to experience, and it is it took about 13 years for this to come to fruition. It is the largest of

all of the libraries or centers and it is also the most expensive.

And it takes up a huge swath of land here in South Chicago -- south side of Chicago.

QUEST: One can only imagine what we've got still to come in the future.

Sara Sidner, I am grateful. Thank you.

[16:30:10]

New York City threw a ticker tape parade to honor the Knicks and their first NBA title in some 53 years.

(VIDEO CLIP PLAYS)

QUEST: Now the players were given keys to the city after making their way down through the streets of Lower Manhattan. The mayor and the New York

governor were amongst the massive crowds who were there to cheer the knicks on.

CNN's Jimenez has more from City Hall.

(BEGIN VIDEOTAPE)

OMAR JIMENEZ, CNN CORRESPONDENT: A day in New York City where the vibes were just off the charts. This is a day that the city has been waiting on

for more than 50 years to celebrate on this mountain top of the basketball world, the New York Knicks, champions once again for the first time in

generations.

Now, over the course of today, we saw the Larry O'Brien trophy, as it is known, paraded down the Canyon of Heroes in New York city as parade goers,

fans cheered them on, trying to get a glimpse of the players that became heroes over the course of the season and then they made their way here to

City Hall, where we saw celebration, a culmination of the feelings that so many here in the city have been wanting to express and have expressed in

the streets for weeks now.

The New York Knicks, NBA champions, and one of the big reasons that this has stood out so much is that, look, the NYPD prepared for millions of

people to be here. That's how much enthusiasm they expected to see over the course of this.

When I first tried to get here, stepping off of the subway before 6:00 in the morning, I couldn't even make it out of the station. That is how many

people were packed in, trying to again get a glimpse of this particular celebration.

And now, as we head into the off season and potentially into the next season, no one is thinking that far. They are thinking about the triumph

that is New York City on Thursday.

Omar Jimenez, CNN, New York.

(END VIDEOTAPE)

QUEST: The second half of the Switzerland and Bosnia Herzegovina world cup match is currently underway. The score now is zero-zero. Switzerland are

the favorites to win Group B as a whole. Even so, Bosnia fans have liked their chances against the Swiss going into the game.

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: I am from Atlanta, but my family is originally from there, so it runs through my blood. Can't wait. I am so excited. All of our

people here. This atmosphere is insane.

I've never seen nothing like it and I am just so excited. I really can't wait.

UNIDENTIFIED MALE: I feel so excited. I am really, really nervous. We need this win, but I think we can get it because we can beat them in the air.

We've got tall players, strong players. Everyone is fighting for our country, everything we've been through. So I feel like we are going to win

this game.

(END VIDEO CLIP)

QUEST: Now in 90 minutes, Canada will play Qatar. Canada still looking for their first Men's World Cup victory ever. The co-hosts are heavy favorites

to win today over Qatar.

Team USA is set to take on Australia tomorrow in Seattle. That contest begins at noon local time in the home stadium of the city's Major League

Soccer team, the Sounders.

During the World Cup, Lumen Field, as it is otherwise known, has been temporarily de-branded to avoid conflicts with FIFA sponsors. It is simply

referred to as Seattle Stadium. That's happening in other stadiums as well.

More than 66,000 people filled it on Monday to watch Belgium and Egypt play a one-one draw.

Hugh Weber is the President of Business Operations for Seattle Sounders FC and Seattle Reign FC. Good to see you, sir. Thank you.

How difficult, how tricky is it, FIFA come along and say well look, we will have your stadium, but please change the name and cover that bit of

advertising. And no, you can't have what you'd normally have over there.

HUGH WEBER, PRESIDENT OF BUSINESS OPERATIONS FOR SEATTLE SOUNDERS FC AND SEATTLE REIGN FC: Well, thank you for having me, Richard.

I would say that FIFA is the global representation of the sport. We just saw a story about the Knicks and how it has taken over New York City. But

each one of these matches that will be hosted in Canada, U.S. and Mexico has a viewership that's actually larger than even the Finals, the match or

Finals game that happened with the Knicks.

So they carry a lot of weight, and so when they come along and say, we want to have a Seattle Stadium instead of what you commercially call it, we tend

to comply.

QUEST: You never thought for a moment saying, no, I am sorry. The stadium has a proper name. The people paid for it, I know I am just being naive.

All right, call me naive and innocent.

WEBER: No, no, no, no! I would say the benefit to the community that the hundreds of millions of dollars that will flow through Seattle and every

host city, far outweigh honestly, you know, the naming of the stadium.

[16:30:11]

QUEST: Right. Sure.

WEBER: We are hosting an incredible celebration here in Seattle. We're hopefully bringing the community together with visitors to our city in a

way that, again, will create a legacy and represent the ambition that we hope to project on the world as to who we are and what we stand for.

QUEST: There's two distinct aspects here. The first is the amount of money that the city will make directly. The indirect, the businesses. Now we know

that the numbers have not been as great as perhaps have been promised or thought, but they're still going to be considerable. The second is putting

Seattle on the map. And here I wonder whether you need to be, I mean, you are a very famous city from the Pacific Northwest that most people, a large

number of people, know quite well.

So how do you benefit, in a sense? How do you project yourself even further?

WEBER: Well, let me first off say, to pick on your first point, which is anecdotally, I'm walking the streets of Seattle. We see hundreds of

thousands of people who don't have tickets, who are here to be part of the movement, the moment. So again, I think that the lack of demand is highly

exaggerated. We are not seeing it here on the streets.

In terms of what it means to Seattle, these are not things that you get to do every, you know, even decade. These are generational types of moments

for our community. And so in order to be able to be on the stage, to have people across the world, yes, of course, they know Seattle for its home of

technology and they know Seattle for a variety of things. But to know it as an incredible host of the world is something we're proud of.

QUEST: And ultimately, the difficulty of getting legacy from big sporting events, I mean, obviously there's the Olympics, which is one on its own,

but you've obviously been planning for this for some time.

WEBER: We have. So there's really two components of the legacy. We see as, one is the impact in the community. Over the last five years, our

particular club, the Seattle Sounders and the Seattle Reign, the women's club, we've been out in the community. We have actually built over 52

community pitches around the state of Washington. These are places for people to gather, to play, for children to play free of charge. That has

been the lasting legacy.

The second part of this is the growth of the sport. North America is the fastest growing market for soccer globally. And we believe that this is a

step function change for the sport and for people who are maybe even, you know, bystanders in what soccer is. We believe that this is the catalyst to

get people to think about this sport as being part of a more of a global community and deeper interest.

QUEST: Sir, I'm very grateful. When I think of Seattle, I always think about Pike Place and the marvelous fish actually, frankly. The superb that

is there. And by the way, you only owe me $3 tonight. I think I got three soccers from you instead of football. But I'll put the money in a charity

box on your behalf, sir.

WEBER: Duly noted. Thank you, Richard.

QUEST: Good to see you, sir. Good to see you, sir. Next time I'm in Seattle, I'll buy the coffees.

I've been traveling a lot lately. Even for me. And for those who are wondering, they weren't all business class tickets. Yes, there was time I

think at the back of the plane, too.

Coming up, next class to class on an Airbus show plane. Let's see what the premium economy buzz is all about. QUEST MEANS BUSINESS.

(COMMERCIAL BREAK)

[16:37:04]

QUEST: For those who've been paying attention, if not, why not, you may have noticed that this QUEST MEANS BUSINESS we've been broadcasting the

show from five different cities in the last 11 days. So we were in Rio de Janeiro for IATA, and then we took the advantage of going to Sao Paulo as

well. Why not? New York, our home. Toulouse for Airbus. And now we're back in London as our other home.

In Toulouse, I saw, of course, where they're making planes for Project Sunrise, the first nonstop flight from Sydney to London that starts in

October 2027. I had a quick look at what it will make to cost to do this journey this October. First class $12,000. Business class $6,300. Premium

economy $2,600, and economy itself would be $1200. So have a look. There you are. There is a wide range of options depending on where you want to

travel in the plane.

So whilst I was in Toulouse, I hopped from class to class to see what you're going to get.

(BEGIN VIDEOTAPE)

QUEST: There is a seat for every price point in today's wide body planes. First class. More airlines are starting to put in first class seats. There

may be fewer of them. It's all about space and privacy. Back into business class, this is the fighting ground. Here, most airlines now, one-to-one

all-aisle access and it's either reverse herringbone with the seats pointing out or herringbone pointing in. How many of these you get in

depends on your profitability.

For the ultra-long haul, how about space for wellness areas and bars? What a great idea. But this requires a lot of space and that could take more

seats. More business class seats with a different configuration. The real fighting ground now perhaps is premium economy. This brings forward premium

leisure travelers who want to have a bit more of a comfortable experience, or business travelers who aren't allowed to travel at the front.

You get more space. You have a nicer chair, better food. Premium economy is where the action is today. And if all of this is too much, well, right at

the back of the plane, there is always our old friend, economy. There are a few developments here except for Air New Zealand with the Sky Net.

Otherwise it's just the same seat, maybe a bit more comfortable. But what more can I say?

(END VIDEOTAPE)

QUEST: With me is Brian Sumers, the founder and editor of "The Airline Observer." He joins me now.

[16:40:02]

The segmentation of the aircraft, what a horrible phrase, but that's what gives the yield management and that's what gives ultimately the

profitability. Which is the growth area in the plane?

BRIAN SUMERS, FOUNDER AND EDITOR, THE AIRLINE OBSERVER: Well, as you say, Richard, the growth area of the plane right now, it's premium economy. The

rule of thumb is that you can charge 1.7 times an economy seat price for premium economy. And Richard, you were just in these seats. Do you think

you get 1.7 times as much space?

QUEST: No. Well, it's not the space, but I can't work out. I mean, this is the idea that you don't want to cannibalize your business class, but you

want people to trade up from economy. And it would seem to suggest from what we're seeing that that is working.

SUMERS: Exactly. You want to have a cabin for every single price point. You want to give people exactly what they want. And one of the reasons that

airlines are able to do this now and couldn't do this in the past is their Web sites, their mobile apps are a lot better. So in the past, you really

didn't know what you were buying. You saw the seat as a commodity.

QUEST: Right.

SUMERS: Now you see all these pictures and you say, I want exactly that, or for this trip, I want something else. That's made airlines a lot more

successful.

QUEST: Why is first making a comeback? I know it's route specific. Trunk routes, major commercial centers. But business class, you get a good

night's sleep anyway. So is first just about status? I'm flying it because I can.

SUMERS: There are a lot of ultra-wealthy people out there. Some of them fly privately. Sometimes some of them will fly commercial if the product is

good enough. So you may remember 15 years ago there was first class on lots of routes that didn't really deserve it. Now you see first class where

people will buy it. You see it in London, Tokyo, New York, maybe to Sao Paulo.

You only want to have first class in markets where people will buy it. And for that you just follow where the money is.

QUEST: And that's excellent advice. And I'm sure you're not the sort of man who ever turns right when you could turn all the way left and head down

into first class.

SUMERS: Absolutely not, Richard, and I will also tell you, first class is very, very comfortable. It's the difference between going on a camping trip

in business class feeling like you're in a tent, or being in a five-star hotel, in a beautiful bed.

QUEST: That's very beautifully put. Brian, I'm grateful. Thank you very much indeed. I know which one I would prefer, provided somebody else has

paid the bill, of course.

Brian, thank you.

And that is our program tonight. That's QUEST MEANS BUSINESS for this Thursday night. I'm Richard Quest in New York. Whatever you're up to in the

hours ahead, or indeed London or indeed Rio or indeed Sao Paulo or Toulouse, I hope it's profitable. "MARKETPLACE ASIA" is next.

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