Segmented airfare products: Alaska Air and JetBlue catch up

It was only a matter of time before the US LCC hybrid airlines Alaska Air Group and JetBlue opted to match their larger US network peers by developing a basic economy-like fare. The revenue opportunity offered by product segmentation was too good to pass up as American, Delta and United are all touting the millions they aim to generate from their branded fares.

Perennial passenger favourites Alaska and JetBlue have to tread carefully with the development of their respective equivalents of basic economy. And both airlines are taking great care to stress that their lowest fare tiers will be different from what is currently available in the market place.

But it remains to be seen whether Alaska and JetBlue can truly develop a basic economy fare that does not feel restrictive to passengers, and they are likely looking at the upsales from basic economy that their larger competitors enjoy as major drivers in their decisions to offer a similar type of fare.