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2016-02-25 11:03:41
Feb 23rd 2016, 16:52 by A.W. | WASHINGTON, DC
AS THE candidates in America s presidential race pontificate on the growing
divide between the haves and the have-nots, the country s airlines are busy
segmenting customers between the haves, the have-lesses, the have-somewhats,
the have-nots and, now, the have-nothing-at-alls.
Airlines have long seen profitability in investing heavily in first- and
business-class while degrading the flying experience in coach to cut costs. But
why stop there? Coach, they have discovered, can itself be subdivided, and then
subdivided again. First there was the creation of premium economy, which
charges passengers extra for what used to be a standard amount of legroom, and
for the exit-row seats that were previously the dominion of in-the-know flyers.
Now there is a new class, a cut below standard economy. Please welcome basic
economy , known to some as last class .
Delta was the first big airline to introduce basic economy, and it refined it
last year as one of its five fare classes. Now United and American have both
announced that they will be debuting their versions of basic economy later this
year.
So what is basic economy? For frugal travellers, it s shorthand for giving up
some of the few remaining comforts of flying economy. The biggest sacrifice is
losing the ability to reserve a seat when booking a flight (so be prepared for
a middle seat in the back row). If you are travelling with family or
colleagues, forget about sitting together. Passengers flying basic economy also
forfeit their right to upgrade their seats and to change or cancel their
reservations more than 24 hours after booking.
From the airlines perspective, last class is an effort to compete with the
profitability of no-frills competitors such as Spirit and Frontier. Airlines
can cut costs by limiting the things to which passengers are entitled.
Eliminating upgrades and standby flying for certain passengers reduces
administrative overheads. And forcing some passengers into the seats no one
else wants could reduce the risk that they will remain vacant.
But some people suspect a more nefarious motive: Delta and its rivals are
making basic economy so unpleasant that people will pay extra to upgrade to
standard economy. Indeed, when you try to book a reservation on Delta s basic
economy, a screen pops up warning you of all the downsides and requiring you to
check a box stating I agree to the restrictions before you can proceed.
Press coverage of the new fare class hasn t been kind. Time called it worse
than any low-fare carrier option . Forbes warned that passengers may soon be
crying foul . A writer for the Star Tribune of Minneapolis complained, I felt
more like I was being made to pay for the privilege of selecting a seat than
being offered a way to save.
But passengers bemoaning this latest indignity have only themselves to blame.
Why are the legacy airlines all emulating the likes of Spirit and Frontier,
which have high rates of passenger dissatisfaction and complaints? Because
those budget airlines are doing extremely well. Travellers have signalled that
they are willing to suffer all sorts of discomforts and inconveniences for the
sake of a lower fare. America s big airlines are simply giving them what they
wished for.