Airlines Ltd hired a BMW design unit to work on a new first-class cabin as it contends with rising competition from Middle East carriers for premium travellers.

DesignworksUSA will revamp first-class seats to increase privacy, add more storage space and improve comfort, Singapore Air said in an e-mailed statement on Tuesday, without elaboration. The carrier also hired James Park Associates Ltd to work on upgrading business-class offerings.

The airline will begin rolling out the new premium cabins on Boeing's 777-300ERs in the second half of next year as Gulf airlines bolster their products to lure lucrative corporate travellers. Carriers are also contending with cooling demand for premium seats as businesses pare travel budgets amid economic uncertainties.

"Singapore Airlines is always looking towards the future," Senior Vice President Tan Pee Teck said in the statement. "We have many major investments lined up for the years ahead to help us retain our leadership position."

The new cabins will be fitted in on-order Airbus SAS A350s and Boeing 787s, the airline said. They may also be installed into existing planes. The carrier is also working on a revamped coach-class offering, it said.