American Airlines, which is presently the biggest airline in the world, has decided to emulate LCCs such as Spirit Airlines and Frontier Airlines by offering its own version of the no-frills, low-fare approach. In recent years the profit margins of discount carriers has increased manifold thus prompting the U.S. largest carrier to pursue the same path.
Media reports quoted top American Airlines’ officials as saying that there is a greater need to put a strong fight against the small but fast-growing rivals including Frontier Airlines and Spirit Airlines, both of which are popular for offering cheap tickets and lots of extra fees as well.
Scott Kirby, President of American Airlines, said, “The airline has many frequent fliers who are eager to pay more for availing premium service. However, 87 percent fliers have been seen booking the flights only once a year and mostly look forward to purchasing airline tickets based on price only. This large chunk of fliers, which account for half of the airline’s revenue, shouldn’t be left out in any case. There is therefore a need to compete with LCCs like Spirit Airlines and Frontier Airlines, and try to gain that side of the business too.”
Kirby said that starting from the year 2016 American Airlines has decided to offer tickets with “less frills” and at a “really cheap price”. The airline will be targeting those markets where it is competing on nonstop flights with discount carriers. He however refused to divulge more details on the airline’s new strategy.