Originally Posted by
bluesky24
They don’t need to match the ULCC’s. The Legacies are into branding and marketing their different products. Not trying to match ULCC’s prices.
They don't need to match ULCC's prices but they do.
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If we don't match the lowest fare in a marketplace, we found that we'll lose around 20% of our customers over time," American Airlines CEO Doug Parker said at the Airlines for America summit on Wednesday.
"It's not for everybody," United Airlines CEO Oscar Munoz told Business Insider of basic economy in an interview last year, adding, "It's the economics of matching and competing in markets where the low-cost carriers are offering this type of basic-economy service."
"For America's three legacy airlines, the premise of basic economy is simple: offer a slightly de-contented product at a price point on par with ultra-low-cost carriers like Spirit or Frontier. It's a product designed to not only keep those carriers from infringing on their turf, but do the job without sacrificing the profitability of their traditional economy-class offering."
https://www.businessinsider.com/why-...-so-bad-2018-9