Articles tagged “basic economy”

Delta says it's using basic economy fares to help better differentiate its products. The jury is still out on whether it will help them compete on routes where they face low-cost competitors.

Did you think Basic Economy fares would be good for consumers? Ha. Airlines are in the business to make money, and this is one more tool to maximize their ability to increase revenues. For shareholders, that's good news.

We'll need time to see if Kayak's new drop-down boxes for comparing basic versus full-service tickets do the trick for consumers, who may still be confused, and for airlines, which may want tighter control over retailing.

Our experts weigh in on why you should think twice before booking the very cheapest airfare these days.

Consumers aren't going to like this product, but Basic Economy fares are a sign of the times. Travelers are already buying tickets on Spirit and Frontier that come without free large carry-ons, so why shouldn't American and United offer a similar option?

Yet again, Southwest is choosing not to copy United, American and Delta. Its independent strategy has worked well for the last five decades, so why change what works?

With basic economy soon available on American, Delta, and United, it's worth comparing the pros and cons of each fare. American's may be good for elite travelers while Delta's is best for those with baggage.

As happened with United, this story will probably go viral, and consumer groups will whine about not having access to bin space. But remember, the market has spoken: Frontier and Spirit charge for bin space, and yet passengers fly them. Why should American and United not sell similar products?

During Jeff Smisek's reign, industry insiders used to poke fun at United for copying Delta on key decisions. But with its new Basic Economy product, United is thinking outside the box. United's new fare may not be great news for flyers, but investors should be happy.

Given how many changes United has made at the top recently, it makes sense that airline may want to delay this new fare class. The new executive team probably wants to get it right.