Canadian air carriers likely to copy United's no-frills fares, analyst says

It won't be long before Canadian airlines adopt programs similar to a new no-frills economy fare introduced this week by United Airlines, says an Edmonton-based air transportation analyst.

"I think that as far as the trend is concerned this is an irreversible trend and it's going to continue," Ken Beleshko said in an interview.

"What United is doing is not really earth-shattering or trend-setting in the industry because it's being done on an ongoing basis. There's no questions the Canadian airlines will follow suit."

U.S.-based United this week announced a Basic Economy fare for customers who want the cheapest tickets to their destinations.

Customers will be assigned seats on the day of departure, and will have no guarantee of sitting beside their flying companions. They won't earn frequent flyer points.

Travellers will be permitted only one personal carry-on item that must fit under the seat — a shoulder bag, backpack, laptop bag or other small item.

Checked baggage policies will be the same as for United regular economy tickets.

Flyers want 'more choice'

"Customers have told us that they want more choice and Basic Economy delivers just that," Julia Haywood, United's executive vice president and chief commercial officer, said in a news release.

"By offering low fares while also offering the experience of traveling on our outstanding network, with a variety of onboard amenities and great customer service, we are giving our customers an additional travel option from what United offers today."

Basic Economy fares will launch in select U.S. domestic markets in the new year. It will then be introduced into other markets. United has not revealed its plans for Basic Economy fares within Canada.

Beleshko warns that travellers may not be saving as much as they hope.

"If you want to take more baggage with you … you're still going to pay a premium on that, and you're going to end up paying the same thing in the end," he said.

"It's the typical upsell. It's like buying a basic car, the basic price is X number of dollars. But if you want a steering wheel, if you want a radio, then it all adds up. And then at the end of the day you get what you pay for."

'No-frills everything now'

But travellers like John Haines at the Edmonton International Airport say if you're not going far, it might be worth it.

"I'd say cheaper flights would probably sell tickets because it's all about the costs. And the no-frills, we have no-frills everything now. No-frills grocery stores, no-frills cars and everyone is buying in on it because we don't have as much disposable income as we used to," Haines said.

Julian Morant, another traveller at the airport, wasn't surprised by the new program.

"You get charged for everything these days," he said. "I think they're pushing their luck a little bit."

Morant said he'd be open to trying the cheaper fares after recently flying on Canada's discount airline NewLeaf.

He flew from Edmonton to Moncton, and said the savings outweighed the sacrifices.

"That's an eight-hour flight for a little bit more than half of the price of Westjet and Air Canada. So I don't really care about all those bells and whistles I can get home for cheap."

Jeanette Wilson has struggled to find a place for her carry-on luggage in overhead compartments.

She would rather just pay for what she expects on a flight.

"I think I would really prefer to pay what it takes," Wilson said. "If you're going to fly you should pay for what you're going to get. And airlines should accommodate accordingly."