Old Feb 12, 19, 10:16 am
Join Date: Feb 2005
Location: JNU
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Posts: 2,834
Saver Fare Treatise

Received this morning from Andrew Harrison:

Dear dave1013,

I am writing today to talk with you about Saver fares, which is a new product Alaska Airlines recently launched. Many of you have written or called us asking for a better understanding of the rationale behind this decision, and I'd like to provide some context for why we launched a new fare class with fewer benefits than other Alaska Airlines products.

Saver fares are designed for a specific type of traveler - one who prioritizes price above all else, and not the elite Mileage Plan™ benefits you've come to know and love. Saver fares offer cost-conscious guests the absolute lowest fare possible. The trade-off is that these tickets are not refundable, not changeable, and not eligible for front-of-cabin seat selections or complimentary upgrades - even as an elite member.

We resisted launching Saver fares, but in recent years the offering of Basic Economy fares by other airlines have become popular among cost-conscious flyers and we started to lose business to the competition. In order for Alaska to be considered by shoppers, we had to reduce our Main Cabin fares to match the lowest published prices of our competitors' Basic Economy fares, while still offering full Main Cabin benefits.

As you can imagine, this became impossible to sustain. This industry shift to Basic Economy has cost Alaska hundreds of millions of dollars over the past few years. It was simply a financial imperative that we launch our own version to protect Alaska Airlines over the long term. We recognize, in some situations, you will pay more for Main Cabin fares that provide the full suite of the elite benefits you're accustomed to. Our goal continues to be what it has always been, to fulfill our commitment to maintaining low fares, great service and generous Mileage Plan rewards.

The airline industry is constantly changing and often forces us to make difficult decisions, but we remain focused on setting ourselves apart from other airlines. Our Saver fares needed to be more generous than run-of-the-mill Basic Economy fares, and they are. Alaska passengers who purchase Saver fares earn full miles for their trip, are allowed to bring a carry-on bag and in many cases can still be assigned a seat at the time of booking - albeit in the rear of the aircraft. Additionally, elite Mileage Plan members who purchase Saver fares will still enjoy priority boarding.

We did a poor job at providing you with enough information well in advance about how Saver fares might impact your elite experience, and for that I apologize. Going forward, we will err on the side of providing our most loyal customers like you with more proactive and transparent communication about product changes of this magnitude — for better or worse.

Thank you for your loyalty and understanding. It means the world to us, and we don't take it for granted.

Andrew HarrisonEVP & Chief Commercial Officer, Alaska Airlines
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