Search Results for "basic economy".
American Airlines told us they planned to roll out Basic Economy fares across their domestic route network in September. I didn’t expect them to do it the day after Labor Day. Of course I suppose it shouldn’t surprise that the thing American Airlines IT delivered on-time was the least customer-friendly move in the known pipeline.
Most of the time I’ve seen buy ups from Basic Economy to regular economy for $25 or so, or more on longer routes. But Tuesday night reader W. shared New York LaGuardia – Denver asking different buy up amounts for different flights — as much as $75 more one way.
There’s no way I would pay $75 more to avoid Basic Economy though I might pay the same or a little more to avoid United in this case.
American Airlines reached out to tell me that one of their published policies doesn’t mean what it says. Even though American’s travel waivers say that Basic Economy customers can only be rebooked onto flights that have Basic Economy inventory available, American tells me that isn’t true.
In fact, it’s partly true but there’s an unpublished exception.
American Airlines travel waivers — the ability to change your travel when the air system is disrupted, such as because of weather or strikes — won’t fully apply to customers booking Basic Economy fares.
This is something American Airlines explicitly promised wouldn’t happen with new Basic Economy fares but that I predicted.
Two years ago The Onion ran a piece about Basic Economy “Airlines Installing Uncomfortable Bumps In Seatbacks Because It Pleases Them”
They had the scoop on a new less comfortable coach product.
When American Airlines first unveiled the details of its new Basic Economy fares — new restrictions on its existing lowest fares — I told you about some of the restrictions that American didn’t.
Customers booking Basic Economy fares are at the bottom of the list to be re-accommodated, even if things goes wrong and it’s American’s fault.
Delta had Song. United had TED. (On the West Coast they also had Shuttle by United.) US Airways had MetroJet. Consultants, especially McKinsey, were peddling the same idea to major airlines in exchange for big fees. In order to compete they needed to start low cost carriers inside their carrier, and those new airlines would fly leisure routes. They’d offer lower fares. And in the case of Song they’d even offer a better product than mainline.
Gradually the attempts faltered, and each of the airline-within-an-airline concepts was killed.
Scott Kirby when he was President of American Airlines talked about Basic Economy as something that would be worth $1 billion to the airline. He modified somewhat to talk about segmentation (basic economy and premium economy combined) as worth $1 billion. He’s used the $1 billion figure at United now that he’s President there as well.
Airlines earnings calls are often fascinating. You’d expect airlines to say as little as possible in public, even in respoinse to analyst and journalist questions, but I still love to listen because executives will drop wisdom and share how they’re thinking broadly.
Scott Kirby has always been one of the best (and most infuriating as a customer) to listen to. United’s 2nd quarter earnings call this morning was no exception.
A month ago United introduced Basic Economy fares on nearly all domestic flights other than Hawaii routes.
By preventing customers from reserving seats when they buy their tickets, and having them board last without full-sized carry on bags, they’re trying to make the travel experience miserable enough that customers will spend more money in order to avoid the restrictions.
Gary Leff is one of the foremost experts in the field of miles, points, and frequent business travel -- a topic he has covered since 2002.
Co-founder of frequent flyer community InsideFlyer.com, emcee of the Freddie Awards, and named one of the "World's Top Travel Experts" by Conde' Nast Traveler (2010-Present) Gary has been a guest on most major news media, profiled in several top print publications, and published broadly on the topic of consumer loyalty. More About Gary »
