It thinks it’s a Premium Service Carrier—a case of self delusion

Until recently, American acted like just what it is, a Mass Market Carrier (MMC), meaning it stresses price over service and comfort.

But ever since it completed the rollout of new Business Class seats on routes serviced by B767s, American has seen itself as a Premium Service Carrier (PSC). (That’s my term for a carrier that eschews loyalty-program gimmicks in favor of exceptional service and real flying comforts. Examples are British Airways and Virgin Atlantic.)

American has only gone halfway, though. Its new pricing, having eliminated many of its lowest discount Business Class fares to Europe, South America, and Asia, is like that of a Premium Service Carrier—but it hasn’t delivered on the exceptional service and flying comforts. The new seats, while a big improvement, don’t come close to those on BA and Virgin.

For frequent flyers, understanding the distinction between Mass Market and Premium Service Carriers is the key to evaluating whether your loyalty is in the right place.

MMCs are often confused with PSCs because they display some of the same characteristics. For instance, their loyalty programs make them seem customer-focused, but they actually trap customers rather than elevate their flying experience in many cases. It’s still the miles accrued rather than the service and amenities that keep you coming back. Seat quality can vary significantly in an MMC’s fleet, reclining only 156 degrees on one type of aircraft and 170 degrees on another (Continental). In American’s case, that will be true until its B777s have been retrofitted with the new Business Class seats. They are close to flat when fully extended, but at an (unimpressive) steep angle.

PSCs put the flying experience first—that’s why customers pay a premium to fly on them. Take BA for instance: It revolutionized Business Class in 2000 with its new seats and cabin layout, and it still offers a true First Class product.

Here’s how the distinction plays out in the real world:

• You’re flying an MMC for back-end ‘perks’ or ‘awards,’ which the airline will dictate when you can use. Resign yourself to the fact that double-mileage (anytime) awards are about the only sure way you’re going to score a mileage award.
• Use MMC’s PSC partners whenever you can. Example: Earn miles in American’s AAdvantage Program, but redeem them on its PSC partners Cathay Pacific and Iberia.
• On MMCs where seats vary, learn which routes have the best seats.
• Keep in mind that the Premium Economy cabin on some PSCs can be better than Business Class on some MMCs. Example: Delta’s Business Class seats on European routes are narrow (only 18.5 inches wide), whereas those in Virgin’s new Premium Economy are 21 inches wide. If I were on a day flight from Europe to the US and wanted to work rather than sleep, I’d go with the wider seat, and spend up to 80% less. Likewise, I would not pay 500% more for United’s Business Class seat over Air New Zealand’s Premium Economy.
• Always go for an MMC Business Class over PSC Economy Class. Premium Service Carriers aren’t that good.
• When it comes to MMC First Class vs. PSC Business Class, the situation isn’t as cut and dried. You have to know each airline’s offerings. In the case of Singapore’s new Business Class versus American’s First, I’d go with the former: it costs a lot less for comparable service.

For more on our rating system, see FCF Nov. 2007.