Jan
02
2017
When Delta started testing ‘Basic Economy’ fares in 2012 the idea was to compete with the ultra low cost carriers — they already had to match price, so they wanted to be able to offer a product that was closer to the limited service Spirit provided, in hopes that customers would buy up to more expensive fares for more services like pre-assigned seats.
Basic Economy fares are no longer just about competing with the ultra low cost carriers like Spirit, Allegiant, and Frontier though. At its recent investor day event we learned that Delta’s Basic Economy fares have spread to 38% of its markets — and growing.
