United expands its basic economy no-frills service

Basic economy fares are expanding into a new batch of United’s markets only two months after they went on sale. The new fares strip away perks such as mileage accrual, overhead bin space and upgrade privileges from economy passengers for a cost savings of about $20. Basic economy was designed to compete with low cost carriers such as Spirit and Frontier. On Delta, which designed and debuted the fares on legacy carriers, at first incorporated basic economy only on routes that competed with the low cost rivals. United, which started selling its basic economy fares in February, took a different tack, instead electing to incorporate the fares on routes between Minneapolis St. Paul and its hubs such as San Francisco and Houston. Throughout the process, both United and its peers picked up heavy criticism from consumer advocates. US Senator Charles Schumer, a Democrat from New York, has been a vocal opponent of basic economy fares. Still, the added revenue from United’s Minneapolis experiment seems to be making a difference and the company is clearly eager to replicate that model throughout its network.<br/>