August 1999

On the first day in August 2008, I thought we'd take a look back nine years ago to August 1999. The airline industry was on the rise, hitting a stride that would carry it for only two more years.

In early August 1999, United unveiled plans for Economy Plus. The plan was simple. Rip out a row or two of seats and provide about 36 inches of pitch to the best customers: Mileage Plus status members and full fare coach passengers.

The full New York Times report from August 6, 1999 can be read here. And you can't help but think United was a little ahead of the game. Sure, the plan did not explicitly call for increased prices for the seating. But, they understood that business passengers were valuable, as the article notes, "Frequent business travelers make up about 9 percent of United's customers but account for 46 percent of its sales, not 36 percent. "

Today, as all carriers try to raise revenue, business passengers are the target. We have Southwest's Business Select and Virgin America's recently announced Main Cabin Select. This is about getting more money from the people (or their companies) that have it. And, although it didn't help keep United out of bankruptcy, they at least understood what the game was about.