basic economy

The New Yorker is on a roll bashing airlines, in November it was how bad United was which was really a piece complaining about mergers and a subtle attack on telecommunications mergers. This week we again we see a New Yorker piece bashing the airlines, another sideways social commentary that’s really about income inequality rather than air transport. (HT: @bhanau) The piece is called “Why Airlines Want to Make You Suffer” and much of it is focused on fees. This is the meat of the argument: [T]he fee model comes with systematic costs that are not immediately obvious. Here’s the thing: in order for fees to work, there needs be something worth paying to avoid. That necessitates, at some level, a strategy that can be described as “calculated misery.” Basic service, without fees, must be…

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Cranky Flier points out that with Delta’s rebranding of their cabins they’re going to be rolling out restrictive ‘basic economy’ fares into more markets. Last week I wrote about Delta’s cabin rebranding efforts, but I failed to really grasp something that is likely going to become a big issue. The lowest fare, Basic Economy, is going to roll out into more markets and become much more restrictive. It’s structured in a way that virtually guarantees a segment of people who buy it are going to be really pissed off. Those who may not understand what they’re buying have no way to remedy their situation. Not even ultra low cost carriers like Spirit do that, probably because it doesn’t make financial sense to do it that way. Delta’s ‘Basic Economy’ fares will no longer offer same-day…

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In March 2012 Delta introduced “Basic Economy” (“E” class) fares that were more restrictive than regular coach fares. The idea was to offer them only in specific markets where Delta is competing against a low cost carrier — Delta has to match the low cost carriers on price, so gosh darnit they’re only going to give the same product that those airlines do at that price. Put another way, instead of beating low cost carriers by offering better value for the price, they were going to only offer what those carriers do. Basic Economy fares were not changeable, and didn’t allow pre-assigned seating. But Delta’s elites, at least, could still receive upgrades. For tickets purchased starting February 1, 2015, Delta’s elites will no longer be eligible for upgrades on these fares. I wasn’t sure if…

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