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ARCHIVE: Basic Economy fares now coming Jan 2017 (master thd)

ARCHIVE: Basic Economy fares now coming Jan 2017 (master thd)

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Old Jan 18, 17, 1:26 pm   -   Wikipost
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"Basic Economy" Fares Delayed, now January 2017


This obsolete thread is now archived and closed. For the current thread, please see American Airlines' Basic Economy Fare Feb 2017 (Master thd)

Basic Economy fares, to have been introduced in the second half of 2016, have been announced as coming January 2017, once the holiday season demand has died down. This is stated in AA's most recent earnings calls. There has been no official announcement of what AA Basic Economy fares will entail, but this is what Delta does:

"Delta introduced fares without seat assignments and with no changes permitted and no elite upgrades to compete against Spirit Airlines — the idea was to offer less, something closer to what Spirit offers, when matching price … and encourage customers to spend more to get more." (Gary Leff - View from the Wing, 22 Oct 2016. Link.)


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Old Mar 8, 16, 2:30 pm
  #1  
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ARCHIVE: Basic Economy fares now coming Jan 2017 (master thd)

Doug Parker announced the previously mentioned AA "basic economy" fares today at the JP Morgan aviation & transportation conference.

These "bare bones" fares will not be upgradable.

Gary Leff's tweeted here.

Now blogged here.

Last edited by JDiver; Mar 8, 16 at 4:57 pm
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Old Mar 8, 16, 3:42 pm
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The real question is whether these new fares will be lower than the current lowest ones (Os and the like) or they'll be even lower with new codes? AC pulled this a couple of years ago, which kept their then lowest fare categories but removed elite benefits (free seat selection, upgrade options, preferred seating, etc.), thus making the lowest full benefit fares 50%+ higher. Of course on international routes, UA has long had this distinction for upgrades but not other elite benefits. (And IIRC DL created a new category of low fares that had no elite benefits domestically.)

Guess this will be yet another shoe to drop later this year (how many feet has AA got?), marking the end of the world as we knew it!
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Old Mar 8, 16, 3:52 pm
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Originally Posted by Shareholder View Post
The real question is whether these new fares will be lower than the current lowest ones (Os and the like) or they'll be even lower with new codes? AC pulled this a couple of years ago, which kept their then lowest fare categories but removed elite benefits (free seat selection, upgrade options, preferred seating, etc.), thus making the lowest full benefit fares 50%+ higher. Of course on international routes, UA has long had this distinction for upgrades but not other elite benefits. (And IIRC DL created a new category of low fares that had no elite benefits domestically.)

Guess this will be yet another shoe to drop later this year (how many feet has AA got?), marking the end of the world as we knew it!
It's feeling like

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Old Mar 8, 16, 4:04 pm
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Oyyyyy
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Old Mar 8, 16, 4:14 pm
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Ugh. Worst ever.
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Old Mar 8, 16, 4:16 pm
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Then remember this thread as well:
http://www.flyertalk.com/forum/ameri...ls-coming.html
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Old Mar 8, 16, 4:21 pm
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Seems perfectly appropriate to me. It's American Airlines, and what's more American than charging more while delivering less?
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Old Mar 8, 16, 4:25 pm
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Anymore of this and I am jumping to Southwest out of Love field. (Hope you are reading this Douggie!). Anyone got a email address for the big guy? I saw we all start spamming his inbox with outrage.
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Old Mar 8, 16, 4:29 pm
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Definitely not a surprise. Can't see how AAs execution would be materially different than DL.

Everyone is fixated on this. What I would be watching for is AA doing a PEY -- or something similar -- DOMESTICALLY and only allowing y to PEY
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Old Mar 8, 16, 4:37 pm
  #10  
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I'm not opposed to paying for upgrades, but what I don't like is having to pay more for my ticket for a chance at an upgrade.

I'd be happier with a system that prioritized upgrades by fare paid but allowed all fares to upgrade.

But whatcha gonna do? Consolidation has reduced the number of alternatives.
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Old Mar 8, 16, 5:18 pm
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Well, I'm going to qualify this year for Exp, but how this rolls out will be a big difference on my plans in 2017.

If the no-upgrade fares are more than $200 less than the upgradable fares (round trip), then I will likely move on. Hello, Jet Blue.
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Old Mar 8, 16, 5:45 pm
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Is there much discussion on how "Basic Economy" fares affect business travellers? Do the Delta folks end up not getting any miles or crappy seats because the fare difference between basic and the next level up is not allowed?
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Old Mar 8, 16, 6:00 pm
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Would anyone be surprised if the current lower Economy fares becomes the new "Basic Economy" fares? Essentially, those Y passengers pay the same money but get even less in return.
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Old Mar 8, 16, 6:15 pm
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Originally Posted by Sant View Post
Would anyone be surprised if the current lower Economy fares becomes the new "Basic Economy" fares? Essentially, those Y passengers pay the same money but get even less in return.
Yes, I would be surprised. It wouldn't make AA more competitive with LCCs. It would hurt the value proposition for higher fares.
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Old Mar 8, 16, 6:16 pm
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Not sure there's really much news here. We knew these were coming, and that they are not upgradable is hardly surprising.

What I am waiting for is what markets and how prevalent...
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