American, United plan additional fare classes

  • By Corilyn Shropshire Chicago Tribune
  • Wednesday, December 9, 2015 1:18pm
  • Business

CHICAGO – Airlines are busy trying to woo customers at both ends of the spectrum.

American Airlines announced Wednesday that it plans to create a “premium economy” service for international passengers that’s designed to be not quite as fancy as business class, but a step up from economy. The new service, set to begin late next year, would offer wider seats with more legroom, on-demand entertainment, noise reducing headphones, priority check-in and boarding and complimentary booze for long international flights, among other upgraded amenities.

Passengers also will be able to check two bags for free.

“Travelers want more choice when they fly and have unique preferences depending on each trip. Our customers tell us they want a class of service between business class and main cabin, and this feedback provided the genesis for our new premium economy service,” said Andrew Nocella, American’s chief marketing officer, in a statement.

And for the budget-conscious traveler, rival United Airlines is planning to offer a “no-frills” fare next year, Credit Suisse analyst Julie Yates wrote in a research note Friday. The Chicago-based airline would join American, which also has a la carte fares in the works, as does Delta Airlines. All three, however, are following in the footsteps of the likes of competitors Spirit Airlines and Frontier Airlines, which have built their business in part by offering travelers fares without extras, charging additional fees for snacks and checking bags.

“We’ve said for some time that over time we would like to give customers a great ability to choose fares that have a varied set of amenities,” said United spokesman Rahsaan Johnson “Perhaps it’s the ability to buy extra leg room or a checked bag at a discount, or a no-frills fare that is discounted (and) would simply include the cost of the ticket.”

Meanwhile, United continues to work on its in-cabin offerings. The airline said Wednesday that beginning in February, it would offer a choice of free snacks to economy class passengers on flights within North America and Latin America.

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