Next month, American Airlines will introduce a Basic Economy
fare that, like United's planned Basic Economy offering, precludes passengers
from carrying on bags that require overhead storage.
The fare will begin selling in 10 markets next month.
Similar to the Basic Economy United announced in November, passengers
purchasing American's fare do not get to choose their own seats, are placed in
the last boarding group and are limited to carrying on a single personal item
that can fit under the seat. Passengers who neglect this and have to check a
bag at that gate will be charged an extra $25 on top of the standard checked-bag
fee.
Passengers with elite status who purchase Basic Economy,
however, maintain their boarding and baggage privileges, as is with United's
fare.
"American Airlines now has something to offer every
customer, from those who want simple, low-price travel to those who want an
ultra-premium experience via First Class," American Airlines president
Robert Isom said. "Importantly, this new fare product also gives American
the ability to compete more effectively with the growing number of
ultra-low-cost carriers."
He added that the carrier "will work hard to ensure
transparency" about the restrictions, including alerts at the time of
purchase on American's channels and via agencies and online travel sites. The
carrier also will remind Basic Economy ticketholders of the restrictions as the
travel day nears.
American plans to expand Basic Economy "in line with
customer interest," according to the carrier.
Basic Economy News
from United & Delta
United will begin selling its Basic Economy fares later this
quarter for travel in the next quarter on flights in and out of Minneapolis-St. Paul
International Airport, United president Scott Kirby said. "We have service
to all of our hubs from there, so we can roll it out and make sure everything
works."
From there, United plans to expand to the rest of its
domestic system in the "not-too-distant future," as well as to shorter
international flights to such destinations as the Caribbean, he said. It will
consider putting Basic Economy on long-haul international flights, as well, he
said.
In
its recent earnings call, Delta executives said their Basic Economy fares,
which do not preclude carry-on baggage but have similar restrictions regarding
seat selection and boarding, also will expand, from 40 percent of Delta's
domestic network now to full domestic coverage by the middle of this year,
Delta president Glen Hauenstein said. Delta plans to achieve complete global network
coverage by 2018.