Big changes coming to Etihad (and they aren't what's being advertised)

A little while back, Etihad made an announcement that made me stand up and take notice.

The announcement mail even opened with a promising:

When it comes to booking a flight, not everyone has the same needs. Some guests like to travel light and on a budget, whilst others may want to make last-minute travel decisions, or carry extra baggage.

From 14 September we will introduce Fare Choices, offering you the option to choose your ticket flexibility, baggage allowance, and many other benefits.

Now you can select a fare with the relevant services, giving you the power to pay for what you really need.

And I wondered...is Etihad the first of the big boys to join the unbundling bandwagon, that the low-cost carriers have perfected to almost an art? But more about my views, later...first the facts.

For bookings made starting 14 September 2015, each fare class on Etihad will carry its own eligibility regarding various aspects of travel, such as miles earned, hand baggage allowance, checked in baggage allowance, date changes, refunds, upgrade eligibility and priority check-in. In some ways, much of this is already there, but usually segregated at the level of economy, business and first class. Well, that's about to change, as Etihad rolls out the new eligibility. Here's a quick summary on what to expect for each type of fare class:

Economy Class

FARE TYPE	BREAKING DEALS	SAVER	VALUE	FREEDOM	GUEST SEAT
Booking class	T, E	U, V	L, Q, M, K	H, B, Y	N
Fare basis	YB	YS	YV	YF	GY
Miles earned	25% Etihad Guest Miles	50% Etihad Guest Miles	75% Etihad Guest Miles	100% Etihad Guest Miles	0%****
Hand baggage	1 bag, up to 7kg	1 bag, up to 7kg	1 bag, up to 7kg	1 bag, up to 7kg	1 bag, up to 7kg
Checked baggage*	1 bag, up to 23kg	1 bag, up to 23kg	2 bags, up to 23kg	2 bags, up to 23kg	2 bags, up to 23kg
Date changes**	No	For a fee	For a fee	Free	1st change free*****
Refund**	No	No	For a fee	Free	Fee of 2,000 miles
					Free for Gold & Platinum members
Upgrade eligibility	No	Yes	Yes	Yes	No
Priority check-in***	No	No	No	Yes	Based on tier status

Business Class

FARE TYPE	BREAKING DEALS	SAVER	FREEDOM	GUEST SEAT
Booking class	Z	W	D,C,J	I
Fare basis	JB	JS	JF	GJ
Miles earned	115% Etihad Guest Miles	130% Etihad Guest Miles	175% Etihad Guest Miles	0%****
Hand baggage	2 bags, total of 12kg	2 pieces total of 12kg	2 pieces total of 12kg	2 pieces total of 12kg
Checked baggage*	2 bags, up to 32kg	2 bags, up to 32kg	2 bags, up to 32kg	2 bags, up to 32kg
Date changes**	No	For a fee	Free	1st change free*****
Refund**	No	For a fee	Free	Fee of 2,000 miles
				Free for Gold & Platinum members
Upgrade eligibility	No	Yes	Yes	No
Priority check-in***	Yes	Yes	Yes	Based on tier status
Lounge access	Yes	Yes	Yes	Yes
Chauffeur	No	Yes	Yes	Yes

First Class

FARE TYPE	FREEDOM	GUEST SEAT
Booking class	R, A, F	O
Fare basis	FI	GF
Miles earned	250% Etihad Guest Miles	0%****
Hand baggage	2 bags, total of 12kg	2 bags, total of 12kg
Checked baggage*	2 bags, up to 32kg	2 bags, up to 32kg
Date changes	Free	1st change free*****
Refund	Free	Fee of 2,000 miles
		Free for Gold & Platinum members
Priority check-in***	Yes	Based on tier status
Lounge access	Yes	Yes
Chauffeur	Yes	Yes

You can read more about these, and some FAQs, here and here.

How this affects Etihad Guest members

On analysis, most of these changes seem to be aligned to match with the changes that Etihad made to the Etihad Guest program in July 2015. The most crucial changes will be the increased baggage allowance for Silver and above category members, differential mileage accruals, and no cabin upgrades for tickets booked on breaking deals fares (Economy to Business or Business to First).

Opinion

I don't think I want to fall for Etihad's spiel that this gives more choice. The key question really is going to be, if a passenger wants to book a particular fare type, will it be available? And the answer is a resounding NO. Why? Check out the following availability on DEL-LHR on 16 September 2015 (a random date and sector).

See the ones in red. So essentially, if I wanted only the limited benefits that an Economy Saver ticket came with, and it was most convenient for me to fly the penultimate option (EY223, EY19), I basically wouldn't be able to book that seat. This isn't the only sector with this issue - there are tons of others.

That's not free market, and if it isn't free market it isn't choice. And it isn't tailor-made, for sure! 

My take on this is that Etihad is trying to respond to whatever pressures it is facing internally - be it fares, revenues, costs or anything else - to become more operationally efficient and profitable. But what really annoys me is the misleading nature of the announcement, which makes it seem like a good thing. And I think I see this coming across the other members of the Etihad Airways Partners alliance.

I suddenly have new found respect for low-cost carriers, where more often than not, what you see is what you get!