AA Announces Basic Economy

jimntx

Veteran
Jun 28, 2003
11,218
3,302
Dallas, TX
www.usaviation.com
Well, it looks as if we are going to have our very own "Where is your god now" section. LOL

Posted on Jetnet this morning:

Basic Economy – Designed to compete
Created by Joshua Freed on Jan 18, 2017 7:28 AM


Today American announced plans for Basic Economy, a new fare option designed to help us compete against growing ultra low-cost carriers. It will be several more weeks before we see the first Basic Economy customers at the airport, but training for Reservations employees and Airport agents at affected airports is under way.

“Why are we doing this? To compete,” President Robert Isom wrote in a letter to employees today. “We know that some of our customers don’t fly very often and they care more about price than about features.”

American needs to compete vigorously with all kinds of airlines and Basic Economy will help us do that by more comparably competing on price and product, while steering customers who want specific attributes to buy a more appropriate fare for them. Basic Economy isn’t for everyone, but it will be a good fit with the other choices we offer such as International First Class, Premium Economy and Main Cabin Extra. Being nimble and trying new things is what will keep our company healthy.

Basic Economy fares will go on sale in February in 10 markets, with the first flights occurring shortly thereafter. We’re starting slow to make sure we get it right, and we plan to expand to more markets this year and incorporate employee feedback along the way. In the long run, Basic Economy fares will be available in select markets and at various prices, so not every flight will have customers traveling on a Basic Economy fare.

What is Basic Economy?
In addition to purchasing our lowest fares, Basic Economy customers will experience the rest of the onboard Main Cabin experience, including a free soft drink and in-flight entertainment where available, and sit in regular Main Cabin seats. American has no plans to alter its seats or the interior of its aircraft for Basic Economy.

Customers who select Basic Economy will give up some amenities included in Main Cabin fares, including upgrades, the ability to change their ticket and the ability to bring on a larger carry-on bag for the overhead bin. Personal items such as a purse or backpack are allowed –the kind of bags that fit under the seat – but all other bags should be checked at the ticket counter. Basic Economy customers who bring a carry-on bag to the gate that won’t fit under the seat will be charged the regular bag fee to check it, plus another $25 Gate Service Fee. Flight attendants will not be policing overhead bin use by Basic Economy customers. Customers traveling on Basic Economy tickets will also board in the last boarding group.

Elites and certain AAdvantage credit cardmembers will receive some special perks even on Basic Economy fares, including earlier boarding groups and the ability to bring a personal item as well as a larger carry-on.
 
I guess this means everywhere Spirit flies?
" In the long run, Basic Economy fares will be available in select markets and at various prices, so not every flight will have customers traveling on a Basic Economy fare."
 
Happy to see the Majors no longer running from these LCC's anymore like they did for so many years. Hopefully they'll feel the pinch from the pushback.
 
Happy to see the Majors no longer running from these LCC's anymore like they did for so many years. Hopefully they'll feel the pinch from the pushback.

HP management is happy to see that AAL employees have bought into their philosophy!
Instead of focusing on improving the premium product / services to entice customers to pay $49 more (for example), the brilliant, winning strategy is to chase those passengers that find Geryhound and MegaBus $49 fares too expensive. Combine this with the relatively poor AA operations, and AA will be beating Spirit in the number of customer complaints. Hooray!
 
HP management is happy to see that AAL employees have bought into their philosophy!
Instead of focusing on improving the premium product / services to entice customers to pay $49 more (for example), the brilliant, winning strategy is to chase those passengers that find Geryhound and MegaBus $49 fares too expensive. Combine this with the relatively poor AA operations, and AA will be beating Spirit in the number of customer complaints. Hooray!


Didn't they try all of that way back when and get clobbered for it? There are just too many of these people out there only looking for the cheapest cattle car they can find and if they don't go after them I'm not sure the Corporate travel budgets are going to be enough to pay for all the higher wages we as employees are back to enjoying again?

To be honest of course I like having open seats to continue an easy non rev experience, I think I prefer being able to pay my bills and be solid middle class even more.

Besides all 3 majors are going to be doing it now so that's what it is.
 
“Why are we doing this? To compete,” Isom wrote. “We know that some of our customers don’t fly very often and they care more about price than about features. Ultra low-cost airlines are growing rapidly — right in our hubs. As recently as 2011, Spirit flew to three cities from DFW. Now they fly to 25. Aircraft orders at Spirit and other ULCCs show that their growth is not slowing. Competing aggressively against these airlines is not optional.”


http://www.bizjournals.com/dallas/n...ines-offers-bigger-bargains-to.html?ana=yahoo
 
I'd rather be trying to entice the customer(s) that fly 2-3 times / week on UA and DL, as opposed to the customer that flies 2-3 times/year with the airline that sells the $49 fare.
 
I'd rather be trying to entice the customer(s) that fly 2-3 times / week on UA and DL, as opposed to the customer that flies 2-3 times/year with the airline that sells the $49 fare.

Good luck - customers that fly 2-3 times per week on any carrier are the hardest to sway, for any number of reasons that aren't worth going into right now. Your best chance for gaining those customers is going to be them falling victim to a massive screw-up by the other carrier. Chances of getting them back after a massive screw-up at AA are equally grim.

That's why AA has decided to focus on attracting the un-loyal and infrequent flyers that seem to flock to Spirit, Allegiant, Frontier and even Southwest in far larger numbers than you'll see at the more corporately entrenched brands.
 
Good luck - customers that fly 2-3 times per week on any carrier are the hardest to sway, for any number of reasons that aren't worth going into right now. Your best chance for gaining those customers is going to be them falling victim to a massive screw-up by the other carrier. Chances of getting them back after a massive screw-up at AA are equally grim.

That's why AA has decided to focus on attracting the un-loyal and infrequent flyers that seem to flock to Spirit, Allegiant, Frontier and even Southwest in far larger numbers than you'll see at the more corporately entrenched brands.

Isnt AA just fighting for all the revenue they can, we compete with UAL DAL for the business market and spirit and swa for the leisure market, not to mention Norwegian Air on the Intl market, who sell tickets for $114 LAX to London. If you say we should just concentrate on the loyal business market, wouldn't that put us on the same footing as Virgin America who never made a profit and got bought by Alaskan air.
 
I don't think Eolesen was trying to suggest that we concentrate on the FF'ers at all. What he was trying to get across (and I agree wholeheartedly) is that chasing after other airlines' frequent flyers is a fool's mission. There's always a reason why a frequent flyer flies Airline A over Airline B or C. As a flight attendant who works predominantly in F/C, I can tell you there is always a story behind "why I fly AA all the time." Sometimes it is because of superior service or a helpful employee (bad connection, lost luggage, etc) on Airline A. More often than not it is due to a particularly bad experience on Airline B or C. Bad to the point that the passengers made the fateful "I'll never fly this airline again as long as I live" declaration. And, I'll be willing to bet that Delta and United flight attendants will tell you the same thing from their FF'ers.
 
Finally, a cost saving move that makes sense while catering to the more valued customers...

"“Unfortunately, to stay competitive as a legacy carrier in today’s air travel market, it no longer makes economic sense for us to provide breathable air at altitude,' said American Airlines CEO Doug Parker, noting that despite the cutbacks, air pressurization would still be available to first- and business-class travelers as well as those willing to pay an additional fee. 'While we regret any altitude sickness, blood problems, dimmed vision, or hyperventilation that may result from air pressure less than a third normal levels, we remind our customers that such effects will diminish as soon as the aircraft descends below 10,000 feet.'”

http://www.theonion.com/article/american-airlines-to-phase-out-complimentary-cabin-35367
 
So eventually the customer ends up wth 4 or 5 choices Basic Economy, Main Cabin (Plus MCE), Premium Economy and BC/FC. Don't see any real downside to that.