Delta is considering a ‘business lite’ concept that would unbundle its front cabin offerings. The airline’s president teased the idea during an earnings call last week and promised more details at Delta’s Investor Day in November.
Could Delta unbundle its business cabin?
Speaking during its second-quarter earnings call on July 11th, Delta Air Lines President Glen Hauenstein suggested the carrier will have a major announcement later this year regarding its business class product. Responding to a question from JPMorgan’s Jamie Baker about unbundling its front cabin, Hauenstein said,
“We’ve talked conceptually about that. I think we’ll be giving you more details as we get but we’re not ready to talk about the details of those plans moving forward. I think Investor Day this year should be very exciting.”
Delta has seen success in unbundling its economy cabin, a move it made back in 2012 with its Basic Economy fare, and other full-service US carriers have done the same.
As for doing the same in the front cabin, this hasn’t caught on in the US, but other major airlines worldwide have done so, including British Airways, Emirates, Finnair, and Qatar Airways, along with Delta’s close partners Air France and KLM. The trend appears to be picking up pace in the last few years amid changing consumer patterns, so it’s not surprising it’s under consideration at Delta.
What could change?
Unbundling refers to removing features and services usually included in a full fare and making them optional for an added fee. The concept is designed to make flying in the business cabin more accessible to travelers, much like how premium economy delivers an enhanced onboard experience at a lower price than business class.
Some of the possible changes to Delta’s business fares could include:
- Seat selection
- Baggage allowance
- Change or cancelation policy
- Lounge access
- In-flight amenities
- Priority check-in and boarding
It’s worth noting that other international airlines that have unbundled their business products have all removed lounge access, so it’s likely Delta will make access to its Sky Club a payable extra for any basic business fare. The big question will, of course, be: Will unbundled fares be significantly cheaper than all-inclusive fares, or will full fares go up in price?
