Delta Air Lines joined United Airlines last month in rolling out a stripped-down version of business class on certain flights, offering lower fares in their premium cabins in exchange for fewer perks. The move mirrors what carriers have done in coach class for years, where basic economy fares removed standard features like seat selection and free changes. Now, some companies that pay for their employees to fly up front are pushing back.
The cheapest new business class tickets on long-haul international routes do not include lounge access, advance seat selection, or the ability to change a flight without paying an additional fee. For many corporate travelers, the flexibility to change or cancel a flight at short notice is considered essential, and the restrictions on the new fares could make them impractical even if the price is lower.
Delta said change fees for its basic business class product could range from nothing to $400 depending on the route, and cancellation fees could run from $99 to as much as $500. United did not disclose specific fees for its new fares, and a spokeswoman said the amounts vary by situation.
The price difference between the basic and standard fares can be several hundred dollars to close to $1,000 or more. On United, for example, a base Polaris cabin ticket from Newark to London Heathrow on October 1 returning October 8 was listed at $4,490. The standard fare for the same route was $4,890, and a fully flexible, refundable ticket was $5,390.
On United's standard Polaris fare, the cheapest option also excludes access to the Polaris business-class lounge, which features a bar, sit-down dining, a rest area, and showers. Travelers cannot select a seat in advance without paying a fee, and no changes are permitted on the base product.
AerSale, a Florida-based company that leases aircraft and engines and offers maintenance services, said it likely would not block the basic premium option entirely for its hundreds of traveling employees. But Jackie Carlon, the company's senior vice president of marketing and communications, said the restricted tickets would not work for most of its workers.
"The real value is flexibility," Carlon said. "Paying a bit more, it's not necessarily a cost to us — it's insurance."
The practical concern for companies is straightforward. Work trips change frequently and without much warning. If a traveler holding a non-changeable business class ticket needs to rebook, the company may end up paying for an entirely new flight on top of the original fare. Only a small share of a corporation's employees typically fly in premium cabins, but even a handful of rebooking situations could push travel costs noticeably higher.
Delta defended the new product in a statement. "We support our corporate travel partners by giving them full control over which fare products are available to their business travelers based on their own policies and business objectives," Delta said. "We continue to see strong demand for premium travel."
The new fares place corporate travel managers in a difficult position. They must now decide whether to allow employees to book the cheaper restricted fares and risk higher rebooking costs, or require the more expensive flexible tickets and absorb the difference as a matter of policy.
