El Al’s New Low Economy Class Isn’t Revolutionary

Think of it as a new airline within an airplane. While many airlines in the past have really liked the idea of starting a low cost carrier, El Al has decided to do it on its existing fleet. There will now be a low-cost class of service on European flights on the airline. Though this may sound unique, and I’ve heard some say it is, it’s really what Air Canada pioneered long ago.

El Al is about to face some serious low cost competition into Europe. Air Berlin started serving Israel on July 7 and easyJet starts in November, so El Al is trying to figure out how to compete. The idea was to come up with a low cost carrier but put it on the same airplane as their existing service. The seats are the same, but if you’re in regular coach class, you get frills. If you’re in the low cost coach class, everything else comes for a price. So just to make sure we’re clear, let’s get graphical. This is not what’s happening:

El Al New Class

The seats are the same. This is the same type of bundling that Air Canada uses with its fare products. Frontier does it as well now. The cheapest fares get very little in the way of frills and the more expensive fares get more. But since the physical product isn’t any different, it’s not really a new class of service. It’s just fare bundling.

So El Al can call it whatever it wants, but it’s nothing new. It is, however, a good idea because it lets people pick and choose what’s important to them.

[Original photo via Wikimedia CommonsCC BY SA 3.0 (de)]

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15 Comments on "El Al’s New Low Economy Class Isn’t Revolutionary"

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David SF eastbay
Member
How do they know who’s who and should get what services they paid (or didn’t pay for)? Will their be a separate in the rear cabin or seats a different color. I guess F/A’s would know people in certain rows are the cheap people so they don’t get anything unless they paid on board for it. I always think it’s amusing to watch an old establised airline with high labor costs try to act like a younger upstart airline who started as a long fare airline. Shuttle by United, Song, Metro, Continental Lite all proved it can be done…..oh wait….they’re… Read more »
Byron
Guest
Is this sort of what southwest does with their business select product? Don’t those passengers get a free drink? I was going to suggest this was the same as what Virgin America does, but it just the bulkheads and the exit rows, not any seat. and @David, It’s not so much a upstart airline as much as (IMO) repurposing seats that would have gone unused. If they’re flying planes with empty seats, they might as well try to sell them as no frills. I’m not sure of how full they get, but it seems to be a good idea. I… Read more »
PF
Guest

Back in the ’60s, Continental had First (F), Coach (Y) and Economy (K)- if you bought Economy K you were not offered a meal or a headset for audio.. Seating for K was the back rows of the main cabin. United also had “red” “White” and “blue” carpet service; I don’t remember the product differentiation between white and blue.

DRG
Guest

The AC take on this approach is to strip the product to its base, which is the Tango fare, and upsell from there. It does a pretty good job of things, actually. The pass product in particular is sold on flexibility and cost predictability but it essentially locks travellers into the higher Latitude level of cost/service.

Frank Vaughan
Guest

I’ve often wondered why the airlines don’t price based on the seat location. For example:
— charge $20 less for assigned center row seating – and the pax gets to move (for free) to the aisle or window if the flight is not full and the doors are closed.
— charge a $25 premium for seating in the first 5 rows of coach, or the 3 rows closest to the exits
— sell early boarding (spelled: overhead bin space!) for $10.

David M
Guest

Frank Vaughan wrote:

– charge a $25 premium for seating in the first 5 rows of coach, or the 3 rows closest to the exits

US Airways does something like this with their Choice Seats program.

– sell early boarding (spelled: overhead bin space!) for $10.

Allegiant does this. It’s also one of the perks for booking Choice Plus on US Airways or Business Select on Southwest.

David M
Guest

Correction to my last comment:

Allegiant does this. It’s also one of the perks for booking Choice Seats on US Airways or Business Select on Southwest.

jjjbbb
Guest
On AC, the Latitude fare customer gets dibs on the best coach seats (ie the first 3-5 rows), and their meal (which is still just a sandwich, chips and a beer) is delivered by the FA who has the locations of latitude customers on her/his manifest. This fare has the most flexibility, and is quite expensive. Tango Plus is a middle fare, which offers advanced seat selection (all but the seats reserved for latitude), full status FF miles and some flexibility, and Tango is a seat which usually is whatever your preference is (aisle/window) and fewer, non-status, points. AC has… Read more »
Andrew
Guest
As CF said, Frontier does this to an extent: Three pricing levels, each $20 apart. The cheapest gets nothing, middle gets two free checked bags, free TV, and the ability to choose seats ahead of time, and top tier gets a free drink, ability to choose the best seats (front of the cabin, exit rows), and FF mile bonuses, I think. To me, choosing my seat ahead of time is non-negotiable (one of the reasons why I absolutely detest Southwest), so I always choose the middle pricing tier on Frontier. To the person who asked how they keep everyone separate,… Read more »
jonathan reed
Guest

Don’t forget United. Pay extra for economy plus for more leg room. Pay extra for early boarding so your to the limit carryon will find space in the overhead bin. Frankly, as a former United elite I like that I can still buy some of these elite perks now that I have lost my status with them.

Ron
Guest
CF wrote: Show me a seat map with dollar signs on each seat so I can pick the seat I want while looking at the map. Better yet, have the passengers bid against each other. Each passenger sets a maximum amount they are willing to pay for each seat. Somebody is sitting in your favorite spot? Raise your bid and it’s yours. Show all the information in real time, and you’ll see the bids ticking. Your $25 seat got picked up by someone who paid $30, and now you’re stuck in your second choice, $15 seat? We’ll refund the difference… Read more »
Nomadic Matt
Guest

People value cheap too much. People complain about crappy airline service but thats because they fly these crappy seats most of the time. I’d rather pay more for some frills.

Andrew
Guest

Ron wrote:

Better yet, have the passengers bid against each other.

Holy cats that’s brilliant. A little Machiavellian, but brilliant.

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[…] about the airline El Al (which seriously sounds like it should serve flights to the planet Kypton) creating a super-low economy section by charging for services normally offered for free. This “unbundling”, as it’s […]

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