Etihad Airways’ first Airbus A321LR enters commercial service today, 1 August, debuting on the Abu Dhabi-Phuket route before expanding to Bangkok, Chiang Mai, Copenhagen, Milan, Paris and Zürich.

The aircraft represents a bold step for the company, being the first single-aisle jet in the world to feature a dedicated first-class cabin. It introduces long-haul features such as lie-flat beds and private suites into shorter-distance markets previously served by more basic cabins. The move is a calculated bet on the future of luxury travel.

Monocle’s transport correspondent Gabriel Leigh joined the Middle Eastern airline on the passenger jet’s delivery flight from Hamburg to Abu Dhabi, and Georgina Godwin on The Globalist to report on the “premium-heavy” onboard atmosphere.

“They’re trying to give premium-level passengers a seamless transition from long-haul widebody flights to these new routes, where they still get lie-flat beds, privacy – even closing doors in first class,” he says. “It’s a very beautiful aeroplane on board.”

The A321LR, which is part of the A320neo family, is configured with two private First Suites offering wireless charging, Bluetooth pairing and space for a guest. Business class is comprised of 14 herringbone seats that convert into lie-flat beds – a layout usually reserved for the likes of the A380.

The airliner’s long-range capability allows companies to operate longer and fly less conventional routes that wouldn’t have been practical before. “Airlines such as Etihad can experiment a bit,” says Leigh. “They couldn’t fly to many places – say Krabi, Medan or Phnom Penh – with wide-bodies, but this aircraft lets them reach those destinations and see how the routes perform.”

Aviation experts agree. Paul Charles, CEO of the PC Agency and former director at Virgin Atlantic, says the move signals a shift in how high-end travel is delivered, and a big step ahead of competitors. “Etihad is saying, ‘This is the new battleground for us,’ and they’re determined to make it a success, especially with rising competition from new carriers such as Riyadh Air. The food quality is superior too.”

The new jet arrives amid the air carrier’s growth spurt, with 27 new routes launched or announced in 2025 alone.

The UAE airline’s gamble is clear: that premium passengers will pay for comfort, even on mid-length flights. “Most travellers don’t even think about aircraft type,” says Leigh. “If the seat, space and privacy feel the same, Etihad may convince them that single-aisle luxury can match long-haul expectations.”

If customers are willing to pay more for a better experience, even on shorter routes, Etihad is making sure that it meets the mark. Will other airlines rise to the pressure and catch up? 

Listen to the full report from 51:10, below: