Oct 22, 2016, 12:59 pm
Last edit by: JDiver
"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.)
ARCHIVE: Basic Economy fares now coming Jan 2017 (master thd)
Mar 9, 2016 | 7:26 pm
#46
Join Date: Jun 2013
Location: US
Programs: AAdvantage
Posts: 1,752
It may not cost anything, but it is something that some people value and will pay for
On top of that , those that do value it and will pay for it are likely to gain since those not prepared to pay for it will not have grabbed seats
Charging for seats is something that AA's JBV does for those without status and for anyone booking its cheapest fares within Europe
On top of that , those that do value it and will pay for it are likely to gain since those not prepared to pay for it will not have grabbed seats
Charging for seats is something that AA's JBV does for those without status and for anyone booking its cheapest fares within Europe
I hope AA wouldn't deny themselves the revenue opportunity of monetizing all seat assignments on these fares.
Edit: Delta doesn't allow elites to sit in their equivalent of Preferred or MCE seats at all when traveling on basic economy fares, though they still earn full mileage. Hopefully AA isn't as draconian.
Last edited by ThreeJulietTango; Mar 9, 2016 at 8:21 pm
Mar 9, 2016 | 8:24 pm
#47
FlyerTalk Evangelist
Join Date: Jun 2001
Programs: DL 1 million, AA 1 mil, HH lapsed Diamond, Marriott Plat
Posts: 28,190
There's a difference between charging for all advance seat assignments like Frontier and Spirit and not allowing advance seat selection at all like Delta's basic economy fares. By not allowing seat selection or changes, Delta's fare is actually more restrictive than Spirit's (and usually more expensive).
Mar 9, 2016 | 9:16 pm
#48
A FlyerTalk Posting Legend
Join Date: Jan 2002
Posts: 46,111
There's a difference between charging for all advance seat assignments like Frontier and Spirit and not allowing advance seat selection at all like Delta's basic economy fares. By not allowing seat selection or changes, Delta's fare is actually more restrictive than Spirit's (and usually more expensive).
I hope AA wouldn't deny themselves the revenue opportunity of monetizing all seat assignments on these fares.
I hope AA wouldn't deny themselves the revenue opportunity of monetizing all seat assignments on these fares.
What AA will do with these new fares seems not to be officially made public yet though
Mar 9, 2016 | 11:04 pm
#49
Suspended
Join Date: Oct 2010
Posts: 3,790
Another scam to make more money, don't really blame them, it seems to be par for the course with the airline industry. These "basic economy fares" aren't even that much cheaper than the regular economy fares.
Mar 9, 2016 | 11:18 pm
#52
Join Date: Jul 2010
Location: SFO
Programs: AA EXP
Posts: 5,270
Moreover, the price difference may be inconsequential to you, but not to (say) a family of four on vacation, who are probably closer to the target customers.
Mar 10, 2016 | 10:43 am
#53
Suspended
Join Date: Sep 2006
Programs: AAdvantage PP
Posts: 13,913
Bingo for a family a four a $15-$25 price differential per seat, particularly if there are two flights involved, adds up. I wonder if someone buys a basic fare and only MCEs are left at check in or at the gate will AA put that customer into a MCE seat (particularly if at some point AA likely begins to add benefits to its MCE seats as DL does with Comfort +).
Mar 10, 2016 | 11:13 am
#54
Join Date: Feb 2013
Location: Bay Area, peninsula! (SFO)
Programs: AA PtPro (2 MM); Hilton Diamond; Hertz President Cr; DL SkyMiles; UA MileagePlus
Posts: 3,649
I have more than 20 500-miles upgrade certs. Should I try to use it right now? 500-miles upgrade certs cannot be used on Basic Economy and sure wondering what will be the price difference between Basic Economy and upgradable fare. Yes, I think current lowest fare will become Basic Economy. I doubt Basic Economy will be cheaper than current lowest fare.
Mar 10, 2016 | 11:19 am
#55
Join Date: Apr 2009
Location: YYF/YLW
Programs: AA, DL, AS, VA, WS Silver
Posts: 6,234
I have more than 20 500-miles upgrade certs. Should I try to use it right now? 500-miles upgrade certs cannot be used on Basic Economy and sure wondering what will be the price difference between Basic Economy and upgradable fare. Yes, I think current lowest fare will become Basic Economy. I doubt Basic Economy will be cheaper than current lowest fare.
If it were me, I would not spend 500-mile upgrade certs any differently due to the anticipation of Basic Economy.
Mar 10, 2016 | 12:42 pm
#56
Join Date: Sep 2005
Location: ORD
Programs: AA; Marriott; SPG; HH
Posts: 3,473
I'm thinking of jumping ship to Virgin America.
Mar 10, 2016 | 1:53 pm
#57
FlyerTalk Evangelist
Join Date: Apr 2001
Location: NYC
Posts: 27,884
As long as it's actually a lower fare than what we'd be paying today, I don't really have a problem with it.
However, if they're simply replacing the current discounted fares with the basic economy fare, and asking us to pay more than we previously had to for the same benefits, that's a problem.
However, if they're simply replacing the current discounted fares with the basic economy fare, and asking us to pay more than we previously had to for the same benefits, that's a problem.
Is that better?
* I think some of the latest data seems to suggest that PRASM is heading down, though I don't know offhand how much of this is just too much capacity or if average fares are starting to come down as well.
Mar 10, 2016 | 2:10 pm
#58
Join Date: Apr 2001
Location: Idaho
Programs: UA:GS; AA: Lifetime PLT; Marriott:Lifetime PLT
Posts: 595
Don't get your hopes up. I re-qualified for EXP last year and upgrades are a joke. SFO-PHX, PHX-ORD, ORD-PHX, PHX-SFO. I look at my place in the upgrade list and just have to laugh - #12 or #13 out of 20+ people. What's the point.
I'm thinking of jumping ship to Virgin America.
I'm thinking of jumping ship to Virgin America.
Mar 10, 2016 | 2:34 pm
#59
Join Date: Mar 2003
Location: Los Angeles, CA
Programs: UA 1K 1MMer & LT UC (when flying UA); Hyatt Credit Cardist; HHonors Diamond; Marriott Gold via UA 1K
Posts: 7,135
Bingo for a family a four a $15-$25 price differential per seat, particularly if there are two flights involved, adds up. I wonder if someone buys a basic fare and only MCEs are left at check in or at the gate will AA put that customer into a MCE seat (particularly if at some point AA likely begins to add benefits to its MCE seats as DL does with Comfort +).
And it makes you wonder if elites buy these fares which don't entitle them to MCE, will a gate agent put such an elite traveling alone in a single middle seat so that the family of four non-elites can get seats together in MCE?
I think that these fares will ultimately be more disruptive to ALL elites than just leaving things as they are.
Mar 10, 2016 | 2:38 pm
#60
Join Date: Mar 2010
Location: PHL
Programs: AA Executive Platinum; Hilton Diamond
Posts: 2,751
And that family of four, who typically would have reserved 4 seats together in advance (or 2 and 2), will now be split into 4 middle seats. And they will expect those of us who purchased fares which enable advance seat assignments to take their inferior middle seats. Multiply that by the number of families on the plane and I can see this turning into a seat war very quickly.
And it makes you wonder if elites buy these fares which don't entitle them to MCE, will a gate agent put such an elite traveling alone in a single middle seat so that the family of four non-elites can get seats together in MCE?
I think that these fares will ultimately be more disruptive to ALL elites than just leaving things as they are.
And it makes you wonder if elites buy these fares which don't entitle them to MCE, will a gate agent put such an elite traveling alone in a single middle seat so that the family of four non-elites can get seats together in MCE?
I think that these fares will ultimately be more disruptive to ALL elites than just leaving things as they are.