FlyI's WAS-west coast fares are less than Alaska's fares by a pretty big amount, over $200 less for unrestricted Y (though FlyI has no fully refundable fare, everything has a $25 change, but it is their highest fare) each way, and by over a $100 on the cheapest RT. This is the first time that Alaska has faced a LCC on a trancons between the same airports, as AS flies SEA-EWR while B6 flies SEA-JFK.
Alaska's new fare structure was designed to be less reactionary and not change every time a competitor changed fares. It was also designed to encourage customers to buy higher fares that carry less restrictions. United has matched FlyI, but with lower end booking codes. Will Alaska match FlyI?
I think what happens in this market will be very interesting as we will see whether or not AS sticks to their new fare philosophy or if they feel they have to match. I'm betting they don't, as they seem to think they are a price setter in the marketplace.
Alaska's new fare structure was designed to be less reactionary and not change every time a competitor changed fares. It was also designed to encourage customers to buy higher fares that carry less restrictions. United has matched FlyI, but with lower end booking codes. Will Alaska match FlyI?
I think what happens in this market will be very interesting as we will see whether or not AS sticks to their new fare philosophy or if they feel they have to match. I'm betting they don't, as they seem to think they are a price setter in the marketplace.