Lufthansa and British Airways are testing variations of the basic-economy fare approach in Hong Kong, with discounts of almost 50%.
Would you be happy to receive a heavy discount on your flight on a full service airline in return for no check-in luggage, boarding last with no seat choice, and not knowing which airline or flight time you’ll get until a few days before you leave?
Lufthansa and British Airways are testing variations of the basic-economy fare approach in Hong Kong, with discounts of almost 50%.
“We are asking the traveller to give us this flexibility and in return we give them a very attractive price. That’s how the deal works,” said Malte Haut, general manager for the Lufthansa Group.
The two traditional carriers are working out how to compete with low cost carriers, copying fare tactics offered by some US carriers and responding to airlines like long-haul, low-fare Norwegian Air.
For example, passengers could be paying a one-way flat fare of US$317 (HK$2,488) to 13 destinations, which include Milan, Venice and Barcelona. A return flight to Lisbon would, for example, cost US$634 (HK$4,976), with the same flight and date costing US$1,202 (HK$9,441) booking the traditional way.
While Lufthansa, with sister airlines Swiss International Airlines and Austrian Airlines, is offering discounts for unknown carriers or flight times until a few days before departure, British Airways is trialling no check-in luggage as well as boarding last and seating choices left to the airline. Hello middle seat!
“We know that when our customers travel with us their needs vary from trip to trip,” said British Airways chief commercial officer Adam Daniels. “We need to ensure that the fares we provide reflect those differing needs so customers can select the best option for them on that occasion.”
Cathay Pacific Airways has so far ruled out plans to follow suit.