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Norwegian forces American to think ultra-discount

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LCCs force American Airlines to consider transatlantic no-frills fares
American Airlines is considering heavily discounted, no-frills ticket options for transatlantic flights to Europe, the Dallas Business Journal writes.
The ultra-discount fares would be designed to compete with low-cost carriers like Norwegian and Iceland’s Wow Air, which have launched growing networks of budget transatlantic flights.
The dramatically lower fares for no-frills seats could be up for sale as soon as next year, one of American Airlines’ top executives said at an aviation summit last week.
The tickets would be similar, though not identical, to the Basic Economy fares it now sells domestically to compete with carriers like Spirit and Allegiant.
“The strategy of unbundling the product and creating sell-up opportunities is something that will work in more markets than just domestic,” Don Casey, American’s senior vice president of revenue management, said in a discussion at the International Aviation Forecast Summit in Las Vegas.
Casey has also commented to travel industry site Skift that American is considering such changes because its customers and potential customers now fly with airlines such as Air Europa, Norwegian and Wow Air between the US and Europe.
Dallas Business Journal / Skift

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