Alaska Airlines Debuts Subscription Model for Flights


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Skift Take

Alaska Airlines's new subscription service could shift the company's sales strategy. It may push the carrier to build lifetime customer value rather than see each purchase as a one-off transaction.

Alaska Airlines began on Wednesday selling flight passes in a move that hops on the popularity of the subscription model. Travelers who agree to pay a monthly fee will receive credits to fly a fixed number of roundtrips among 16 selected U.S. West Coast airports.

"In our basic plan, we're introducing affordable travel on par with an Uber ride or bar tab," said Alexander Corey, managing director of business development and products.

A basic subscription starts at $49 a month and requires booking tickets at least two weeks before travel. A more flexible subscription starts at $199 a month and allows same-day booking.

Subscribers can fly on routes within California or between California and Reno or Phoenix, covering about 100 daily flights.

"We designed the product by trying to create something our California guests have told us they needed," Corey said. "In our data, 3.5 times more people travel within California than within any other state."

Alaska Airlines is the latest airline to adopt a much-discus