The Evolution of Basic Economy – an Update
A Window into the Competitive Playbooks of the Airlines
Low Cost Carriers were a thorn in the side of the legacy carriers long before the industry felt the need to add the term “Ultra”. With networks built on maximizing revenue through connectivity, the legacy carriers became prime targets of low cost airlines who could fly point-to-point for low fares with their low cost structure. Starting with the original PSA and Southwest, low cost carriers required response from the legacy carriers. It is from these early responses that we first saw restrictions such as the Saturday night stay, and 14-day advanced purchase. As the first generations of LCCs age, the latest iterations required a designator to differentiate. The new LCCs that grew to presence in the 2010’s includes airlines such as Allegiant, Frontier, and Spirit, all with costs even lower than the traditional LCCs, and thereby earning the title Ultra Low Cost Carriers. The greatest impact has been felt by […]