After United announced their basic economy fares late in 2016, we all knew American would follow suit. The legacy carriers are all scrambling to adapt to a market in which budget airlines like Spirit, Frontier and Allegiant are making serious inroads.
On Wednesday the airline released details on these fares, and they look remarkably similar to those being rolled out by United. American is the last of the U.S. big 3 to roll out this new fare class. Actually, now they are not, since they are moving rather quickly to roll these fares out ahead of United. AA isn’t giving consumers much time to react to the changes; the American Airlines basic economy fare takes off on February 10, 2017.
The American Airlines basic economy fare
Here’s what American’s version of “basic economy” looks like:
- No seat assignment. Seats are assigned at check-in.
- Personal item only (under seat in front of you). No normal carry-on or checked baggage allowance.
- For bags checked at gate, standard checked bag fee applies, plus $25 (so $50 total for 1st checked bag)
- Last boarding group
- No upgrade eligibility
- No same-day standby or flight changes
- Reduced qualification toward elite status
- Still earn AAdvantage miles
This is clearly a no-frills fare. AAdvantage elite members and people who have one of American’s co-branded credit cards can still get some of their baggage and boarding benefits, so they wouldn’t have to worry as much. However, it’s a catch 22 for elite members since they won’t be earning as many miles toward re-qualification.
BUT, the American Airlines basic economy fare outdoes United’s in 2 ways:
- You can still earn (at least some) elite qualifying miles/segments/dollars
- You can pay for a seat assignment within 48 hours of the flight
We’ll see if United will take the hint and make some changes to their basic economy fare.
American Airlines has made it clear that flight attendants won’t be tasked with policing overhead bin space. So if someone brings a rather large “personal item” and stuffs it in the overhead bin, there isn’t much anyone will do. It will be the responsibility of gate agents to ensure that baggage polices are adhered to.
What does this mean for fliers?
I’m split on these changes. I previously detailed how I thought there could be an upside to United’s basic economy fares, and I think it will be the same with American. Put simply, it will be price. They have to compete. Many people are obviously willing to go bare-bones if it means paying less, and the American Airlines basic economy fare is their response.
There are those afraid that American will simply change their current lowest fare class to “basic economy”, effectively making normal main cabin fares more expensive. Consumers would simply get less for the same price. I do understand this worry, but I still don’t see how American can do this without alienating a lot of their frequent fliers.
What do you think of the American Airlines basic economy fare?
Header image courtesy of Simon Sees under CC 2.0 license.
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I think it would go a very long way for the airlines to show me the flight price, assuming that I am gate checking one bag. Include the bag fee in the ticket price.
And then, during checkout ask me again whether I have a bag or not.
If I do not have a bag, then give me a “discount” on the ticket price, less the $25 or $30. If I do have a bag, then price stays the same.
It achieves the same goal as charging extra for a bag, except…I get to feel like I am winning.
I think strategies like that will go a very long way to enhance the experience for customers. And encourage people to check their bags instead of holding up the whole plane looking for overhead bin space.
Currently, the nickel and diming of the flight prices borders on criminal. It’s a pain and lacks transparency.
Just yesterday, I booked a flight for my college student sister who wanted to use Spirit. As I was ordering her ticket, I realized that on top of seats, bags, carry-ons, and more…those guys charge for checking in at the counter too! I could only laugh.
But it would be refreshing to feel like I was getting a deal by showing me a so-called inflated price and then letting me whittle down the price based on my personal requirements or tastes.
It would, importantly, remove me from all of the gamesmanship that’s going on for flights. Fees: check-in, bag, early boarding, seat assignment, gate check, soda, snacks. It’s getting ridiculous.
Another point, before I step down from my soapbox…A lot of people will be asleep at the wheel if the airlines bundle the bag price by assuming each ticketed passenger brings a bag. As a result, the airline would likely see more revenue generated at the point of sale and theb less customer angst at departure.
I think this is a hidden fare increase. They will make their current lowest fare basic economy and raise the price for regular economy. Since 85%+ of Americans fly less than once per year, none of them will notice a difference in price.
A lot of people are assuming this, and I totally hear the concern. I don’t think AA (or United) can pull this off, though, at least not to the extent people fear. Turning the “85%+ of people who fly less than once per year” statistic (source? I’m honestly curious) on its head, will they even choose United/AA unless they can compete with lower prices? Won’t their primary concern be $?
I will give AA credit for going at least one small step better than DL and UA. But all these things will do is discourage their most loyal customers and punish the business traveler. Instead of constantly trying to reach for the bottom, I’d rather see them take a high road and cater to their most loyal customers. They’ve reduced the number of Main Cabin Extra seats, reduced service and downgraded aircraft on many routes so upgrades are more rare than they used to be.
As bad as they continue to become, I’d say they are still better than the other two. At least miles/EQMs are still earned. As tight as the back of the bus is, it’s still a tad bit more space than UA. It’s as though their goal is be just a tad bit better than the worst. Not a very good goal in my opinion.
Can you book a basic economy on line or do you need to call AA and pay the $60 fee and can you use travel miles??
You can book basic economy online. It should be in its own column and easily identifiable.
You cannot book an award ticket in basic economy. If you use your miles, you’ll be booked into the main cabin, and you can also do this online.