The new pricing model provides the most basic of service in exchange for a discounted ticket

The challenges facing the airline industry are familiar and persistent. The cyclical nature of business, the global economy, uncertainty of fuel prices, technology, raising concerns for the environment and government restriction all have had and continue to have a substantial impact on airline companies. In an attempt to stay competitive United Airlines recently announced a new, no-frill, low-budget fare designed for the most fiscally conservative customer.

Starting in January, United customers will be able to purchase bare bones flights called Basic Economy, that are stripped of many of the amenities that are table-stakes for most carriers including the right to choose a seat and the use of the overhead bin to store luggage. The new fares, to start with, will only be available on routes where United competes directly with low-fare operators. In time, the airline is expected to expand Basic Economy to cross Continental US, Mexico and Central America flights.

PSFK provides access to this article and every report, case-study, interview, and analysis that we publish for our members. PSFK Professional Membership also unlocks accessto unlimited customized research assistance and our database of over 100,000 insights on innovation trendspanning across eight industry sectors—from culture and brand to retail and customer experience.
Already a members? Log in