RUMOR: Delta Premium Economy Announcement Coming Shortly

Last night I posted about the rumor of American introducing premium economy very shortly. This morning American announced that they’ll be introducing premium economy starting in 2016. 😉

American-Premium-Economy-1

Here’s another “rumor.” American may not be the only airline announcing a new premium economy product this week. Rumor has it that Delta will be announcing a premium economy product as well, as early as the end of this week.

Before American’s premium economy announcement earlier today, no US airline offered a true premium economy product. That being said, Delta has sort of led the way when it comes to “innovating” extra legroom economy seating with their Comfort+ cabin:

Delta-One-London - 10
Delta’s Comfort+ cabin on the 767

If Delta does indeed introduce premium economy, my feelings are the same as with American’s announcement — ultimately it’s probably a smart business decision and allows them to try to maximize revenue per passenger as much as possible. The terrible news is that upgrade instruments will likely only be valid for one class of service, meaning you can probably only upgrade from economy to premium economy, or from premium economy to business class. And as I outlined in the post about American’s premium economy, those fares typically aren’t cheap.

If Delta does indeed make this announcement, you can’t help but wonder whether there’s really any competition left. We’ve gone from the “big six” carriers to the “big three,” and they seem to be matching one another tit-for-tat. If two airlines announce the exact same “innovation” within a week, how much “competition” is really left?

Like I said, it’s just a rumor, but I’d keep your eyes peeled for the next couple of days…

How do you feel about the possibility of Delta introducing premium economy?

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qd3 Guest

Interesting. There exists a "Deluxe Economy" at Vietnam Airlines on long haul flights: Same seat, extra legroom, and better tableware and service, and W class code. Meanwhile Air France discontinued short/medium haul premium economy altogether, replacing with flex fare.

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RaflW Guest

As I've mentioned before, DL needs to add P.E. in my opinion not because of AA, but because folks like me are not really willing to fly Y- any more, and with the devaluations impacting access to C+, as well as just the general degradation of the big 3 FF programs, I am not the only one who is looking at European carriers for 2016 Atlantic flying. Of course, this is also in part because of Delta and the rest of the big 3 devaluing their FF programs. If I still felt being DL Gold or Silver had that much to offer, I'd be in less of a hurry to sample the international carriers. At this point I don't really care if I renew as a GM in 2017. If DL de-emphasizing SkyMiles ends up meaning they have to up their mid-cabin game, that's not the worst unintended consequence.

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Andy 11235 Platinum

To add an economist's perspective... Just because both AA and DL announced premium economy in the same week doesn't mean collusion. It could mean that competition is working well enough that they feel a need to offer the same product to keep customers. As an example, 4 different gas stations at the same intersection all probably charge the same for gas -- not collusion at all, but competition such that one cannot charge more than another without going out of business. In fact, differentiation in product is an effort to move away from perfect competition and so enable charging a premium over competitors.

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u600213 Member

So now UA can just rename Business Class on S-UA 777 with 8 across as premium economy and rename Global first as Business with 0 cost :-)

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Bgriff Diamond

It occurred to me this morning that I'm actually not sure how Delta's Regional Upgrades are supposed to work once Comfort+ is a separate cabin domestically next year. And despite having the longest, most confusing FAQ page ever for the change, I don't think Delta has addressed it.

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