The Truth About United’s Basic Economy

Everyone knew the day when United would announce their plans for a no-frills economy class fare was coming. The big carriers are looking for ways to grab a little bit of revenue away from the ultra low-cost carriers like Spirit, Frontier, and Allegiant. To do that, the airlines are removing benefits from certain fare classes. Delta has their version, with the same name even. American has discussed the same thing, and their fares are slated to roll out sometime in 2017. Scott Kirby, who used to work for American, now works for United and now, probably by coincidence, the day we knew was coming has arrived. United’s Basic Economy has been formally announced.

United Basic Economy

At first, I wasn’t sure I wanted to write about these new fares. There were quite a number of articles that had been written and a lot of anger and gnashing of teeth was taking place. But then I started seeing a lot of conjecture that these new fares would mean higher fares for those who don’t buy Basic Economy. That these new fares would be all that’s available and now you’ll have to pay to bring a carry-on on the plane.

The Facts

You can read the full details of United’s Basic Economy on their site, but here are the important facts:

  • No Pre-reserved seats – Seats on these fares will be assigned at check-in
  • Group 5 Boarding – These fares will be assigned Group 5 for boarding, the last group in the boarding process. United Premiers, Star Golds, and MileagePlus cardholders are excluded from this policy.
  • No voluntary ticket changes – 24 hour/Same Day Change policy excluded
  • No Premier Qualifying Miles, Segments or Dollars earned, lifetime miles or contribution to the four-segment minimum – Redeemable miles will still be earned
  • No EconomyPlus or Premium Cabin upgrades
  • No combinability with regular economy fares or partner carriers (includes interline travel)
  • Carry-on bags are limited to a single personal item (purse, backpack, etc.) – United Premiers, Star Golds, and MileagePlus cardholders are excluded from this policy and can bring two carry-on bags.

Thoughts

Besides the one bag policy on these fares, which distinguishes United’s Basic Economy from Delta’s implementation, the one thing that really sticks out to me on the list above is the lack of combinability with partner carriers and lack of interlining. This means if you are searching for a fare that requires a partner connection, say San Francisco-Bangkok, which would require a connection on someone like ANA in Tokyo, you would never see these Basic Economy fares in your results.

The “personal item only” piece seems to be the most inflammatory part of these fares, second only to the screams that families wouldn’t be able to be seated next to each other (more on that later). The truth is, customers in Group 5 usually do not have anywhere for their carry-on suitcase anyway and have to end up checking them, possibly holding up boarding.

As far as the families getting seats together, Delta even spells this out in their Basic Economy details:

With Basic Economy, you will not receive a seat assignment until after check-in or at the gate. Passengers traveling together, including families, may not be seated together.

If you want your family to be seated together, you simply buy the more expensive fare to ensure that you can preselect seats. So, I do think this point is being blown out of proportion. Which brings us to the conjecture/prediction piece of this.

Delta and United at PDX
The reality of Delta’s basic economy fares is that they are not as prolific as people think. I have only come across them twice in my searches and their savings was rather small when compared to the regular fares, something like $75 on each search. The other piece of this is the assumption that United will raise the regular fares and make money on those from people who do not want to part with their luggage or seat assignments. Based on Delta’s fares, I don’t think that will happen at all. Regular fares will stay where they are and these discount fares will be used to pull a little revenue away from the low cost carriers. United already has these basic fares in their systems and they show up about as regularly as Delta’s, the difference now is that United won’t be offering benefits with these fares. Seems like a “fare” compromise.

I think a lot of the fear around these fares is the belief that all of the economy seats will be sold as these new Basic Economy fares. That is simply untrue. United cannot sell a full 737 of these fares and survive, even if every passenger wasn’t an elite member and had to pay to check a bag. What they will do is offer a few seats on specific routes where they want to grab some business away from the competition at these Basic Economy levels.

Summary

We will not know exactly how this implementation of no-frills economy will go until 2017 when United rolls them out. But the odds of this being the doomsday that some people are predicting does not line up with the reality we have been seeing with Delta’s implementation of the exact same thing. Sure, Delta’s basic economy allows carry-on bags, but they still do not offer these fares on every flight or even that many seats on the flights where they do sell it. There is also the likelihood that these fares will be excluded from corporate booking engines, just like Delta’s no-frills fares.

Take a deep breath. It is likely you will encounter these fares on at least a few of your searches but do not fear, it is improbable that United will jack up the regular fares. So if you want to bring a bag onboard, you will likely be able to do so with very little markup.

International Airlines – Price versus Service

The Economist has an interesting short piece and infographic on international airlines and the price you pay versus the service you receive. They used customer satisfaction data from Skytrax and lined that up against flight-volume data from FlightStats.com.

At the bottom of the satisfaction list? United and American Airlines.

Another interesting tidbit was the “worst airports to sleep in” category. Port Harcourt International Airport in Nigeria topped that list… And that isn’t a good thing.

United Moves p.s. Flights to Newark

Last week, United announced that they would be moving their p.s. (Premium Service) operation from John F. Kennedy International Airport to Newark Liberty International Airport. At first, I scratched my head, then I watched the flood of posts about how this is a terrible move, then I read rebuttals that it is a genius move. As with most things, the reality is somewhere in the middle.

Snowy morning at Newark.
United will cease operations at JFK in October of 2015 and move the p.s. flights to Newark. This means there will be no more service at all for United at JFK. This was done via a slot swap with Delta, basically trading landing rights at each airline’s hub. United has said that this will help boost connecting traffic via Newark from the west coast, especially the European destinations served only out of Newark and United’s only flights to India. The move will also give business class customers a flat-bed seat from the west coast to those same destinations.

With the addition of p.s. service at Newark Liberty, United customers flying on transcontinental flights to and from Newark in the BusinessFirst cabin will, for the first time, enjoy flat-bed comfort for their entire journey when connecting to and from flights across United’s extensive trans-Atlantic and trans-Pacific networks.

As Seth points out, there are some huge operational benefits as well, including having 757-200s with more BusinessFirst seats at their disposal. It also frees up some Airbus and Boeing planes to operate other routes rather than doubling up on New York service as United was doing previously.

These aircraft are also occasionally serving Hawaii and other domestic destinations as the older 752s are being retired out of the fleet. By putting all of them into the same pool of potential aircraft it is possible to shift capacity much more easily.

The rest of Seth’s analysis is worth a read too, as usual, he’s level headed and reasonable when it comes to reporting aviation news.

At first, I had very mixed feelings about the move. Terminal 7 at JFK where United operates is a prime example of how bad an airport experience can get. Terrible security lines, no real amenities in the terminal, and at times, a lot of overcrowding all made me despise the experience. But, JFK is convenient for a lot of Brooklyn, Queens, and the rest of Long Island. I took a few red-eyes from the west coast to be at our offices around the Brooklyn area and it was a really quick transfer. I find the transfer from Newark to Manhattan to be about as long as the one from JFK to Manhattan and sometimes Newark is faster, depending on traffic and which way your cab driver decides to go. Also, Newark has come a long way in terms of amenities. It’s clean and for the most part well lit and while I am not a huge fan of the OTG changes, the food options are still much better than what is available at Terminal 7 at JFK. The one big downside of moving things to Newark is the United Clubs. I do not use them a lot, but every time I do they are packed. As in, can’t find a seat packed. It is usually around the time of the west coast and European departures but I have also seen it that crowded early in the morning. If United does something to help alleviate the crowding issues, there is not much left to say about this not being a good move.

Just think about it. You live in San Francisco but have a meeting in Hartford, Connecticut. With this move by United you can now fly in BusinessFirst overnight and catch the early morning flight to Hartford at Newark, rather than having to drive from JFK up that way. Or, if you are catching a European connection, you can now get the BusinessFirst experience rather than a domestic first class seat, all the way from your origin to your destination. Still don’t want to trek to Newark? There are always the flights out LaGuardia.

Make Your United Partner Reward Bookings Now!

If you missed the news, United is lowering the value of their mileage currency on February 1, 2014. The main area of impact is international premium cabin rewards, with those flights on United metal going up in price slightly, but flights on partners going up significantly.

Be sure and book your rewards soon if you want the lower prices. After February 1, 2014, any change to an award that requires the ticket to be reissued has the potential to be repriced at the new reward levels. I do have a prediction: the implementation/roll-out of this new price reward chart is not going to go off without a hitch.

If you want more information on the devaluation and what different flights will cost, Seth has a great breakdown here.

United’s 787 – First Revenue Flight

On Sunday I had the privilege of being a part of United’s first revenue service of their newly delivered Boeing 787. The flight was scheduled between the Houston and Chicago hubs. Work conflicts prevented me from buying a ticket in advance for the flight but I was granted access to the plane before the first flight and to the tarmac for the plane’s first revenue taxi and take-off.

The time that the media had on the plane was fairly short. We were granted 10-15 minutes to walk the aircraft, get pictures, and talk to the crew. With people with video cameras, still cameras, etc. walking around aircraft becomes a challenge, but everyone tried to make it work as best as they could.

United 787 Forward BusinessFirst Cabin

United has opted to go with a galley at the main entrance to the aircraft. Some flyers have complained that the airline did not choose something like a bar or open space in this area but I do not see the point of that when the added benefit of a mid-cabin galley is faster service for passengers while in-flight. After making a right turn when boarding you enter the 2nd of the two BusinessFirst cabins. The aisles feel a bit taller due to the way the overhead bins are laid out and it creates the illusion that the cabin is bigger than it is. The BusinessFirst seats are the same ones that Continental installed on the Boeing 757-200s and the Boeing 777-200s before the merger and in the 787 they are laid out in a 2-2-2 configuration.

Walking into the Economy Plus and Economy cabin the seating configuration changes to 3-3-3 with Economy Plus having extra seat pitch (legroom). The bulkhead seats (row 16) seem to be the best if you’re wanting a little extra legroom with the added benefit of no one reclining into you. One thing I noticed is that all seats in coach have a power port, which matches United’s description of the cabin, but not its seat map.

The in-flight entertainment is of the new Panasonic variety and features a slightly updated interface and a new in-flight map. There is also a USB port available for you to use to charge your USB devices.

United 787 Economy Seat

You will also notice something missing in the above photo… A window shade. The 787 is outfitted with electrochromic windows or “smart glass”. As you use the button below the window, an electric charge is applied to the glass, changing its opacity, eventually becoming a still see-through, but darkened window shade. Since the flight I have read a few posts that say the windows do not get dark enough and sun still significantly comes through the shading. You can see what the smart glass looks like on Dan Frommer’s report from the JAL 787.

United 787 Economy Cabin

Some people are probably interested in the exit row on the 787 and whether or not it is worth sitting in. I took a photo of the exit row and as expected, it has a ton of legroom. The window seat does have the emergency slide slightly in front of it but it does not protrude too far into the space of that passenger. The one downside is the proximity to the lavatory. I assume this area will be used as a congregation space for people waiting to use the restroom. Not great when wanting to get some sleep.

United 787 Emergency Exit

Before leaving the aircraft I paid a visit to the rear galley, the cockpit, and the pilot rest area (I hope to post all of these images soon). The cockpit is impressive, especially when you notice that it lacks a lot of the analog displays (altimeter, attitude, airspeed, etc.) that we have grown accustomed to seeing. The heads-up displays were not pulled down but the idea of a commercial pilot being able to keep his focus forward while monitoring instruments, much like a fighter pilot, is comforting. With the 787 the pilot environment has become more about situation awareness and less about removing focus to check instruments.

United 787 Cockpit

After touring the aircraft, Jeff Smisek gave a brief speech about not only being the world’s largest airline but striving to be the world’s best and how he sees the 787 helping to bring that to fruition. He and the flight crew that would be operating the first revenue flight then cut a ceremonial ribbon and the flight began boarding.

United's Jeff Smisek Talking about the 787

At this point, a few of us were given tarmac access to photograph the 787 as it pushed back from the gate, taxied, and took-off. My heart always beats a little faster when I am on the tarmac. There is a lot going on around you and a whole lot of big jets being prepared for their journey. All of that plus the smell of aviation fuel equals an excited me.

The 787 was loaded up, the doors were closed, and the plane was pushed back from the gate right on schedule. I noticed something intriguing and delightful as the engines were started; The sound. Instead of the slightly higher pitch whine that is common with jet engines, the 787 had more of a low pitched hum, making it much quieter than I expected. I knew that Boeing had made strides in making the engine exhaust quieter, but I didn’t expect it to be that significant. I am guessing this is noticeable inside the aircraft as well. The 787 then performed a short taxi to runway 9 at IAH, took off, and made a graceful left turn to head to north to Chicago. Again, the sound during the engine run-up and take-off was much quieter than what I was expecting.

The United 787 Ready to Taxi

All in all it was a very fun experience and I look forward to having my first ride aboard the 787 sometime in the near future. United is currently running the aircraft between Houston, Chicago, and Los Angeles. As the other 787s are delivered, I would expect to see service to Newark as well. If you have flown the 787 I would love to hear what you thought of the flight, if you noticed any impact from the humidified and 6k foot pressurized cabin, or any other thoughts about your trip.

New First Class Meals on United

My flights on United yesterday had the new meal options on them and I took a couple of photos of them.

The first, the lunch, was served on a 9:30am flight out of IAH. It is a bit odd to eat lunch that early, but the reasoning behind serving lunch then is that the passengers coming off of east coast connections would receive breakfast twice on westbound flights. The meal consisted of a beef burrito, fruit, and asparagus soup. The burrito was just ok, but the soup was actually quite good.

New United First Class Lunch Service
Beef burrito, asparagus soup, and fruit

On the return flight a snack was served. The snack served before the merger was a literal “cold plate” of meats and cheeses. It was not very filling and was full of sodium. The new cold plate is a piece of grilled chicken, a cold pasta salad, and fruit. The pasta salad was extremely tasty for airplane food and the entire snack was very filling. Surprisingly, the chicken was moist and juicy and if the United caterers keep up such quality in the future I’ll be very impressed.

New United First Class "Cold" Plate
Grilled chicken, cold pasta salad, and fruit

While lunch was a little disappointing with the beef burrito, I think the new United is trying to improve the food options. My one suggestion to them would be to bring back the side salad on the lunch flights. If the options are a burrito and side salad or a large salad with shrimp and a side of fruit, I think flyers will be much more satisfied.