American Airlines, one of the biggest factors in the trans-Atlantic market, is adding Basic Economy pricing to flights to Europe, hoping to keep sales away from the ultra-discounters such as Norwegian and WOW, whose sales of low-price tickets have been growing.
American’s offering will be phased in over the next few months, on routes to be announced; most likely they will come first on routes heavily contested by the discounters, sometimes with under-$100 one-way fares. Like the discounters, AA’s Basic Economy will have plenty of fees for extras such as seat selection, food or baggage, and plenty of restrictions, including not being eligible for purchased upgrades. Unlike on domestic flights, however, a free carry-on will be permitted.
American’s CEO Doug Parker believes it will be an attractive offer: “It’s service on American Airlines, which means it’s going to be better than service on low-cost carriers, but it matches the low-cost carrier fares.”
