A FlyerTalk Posting Legend
Join Date: Jul 2002
Location: MCI
Programs: AA Gold 1MM, AS MVP, UA Silver, WN A-List, Marriott LT Titanium, HH Diamond
Posts: 52,564
I think it's cyclical. Right now, the airlines are in 100% cost cutting mode. Therefore, there is little competitive initiative beyond the basic fare-matching that they always do. They are looking at places to cut out near-term costs, and FF programs are an easy target. (Not that I think the changes are logical...)
Eventually, one airline will decide that increasing rewards will increase revenues and profits, and they will start enhancing the programs again. We've been through this a few times.
Right now, I firmly believe that the airlines do NOT want more customers. In fact, many airlines seem to be using every customer service opportunity to DISCOURAGE me from flying. Perhaps they want to paint as bleak a financial picture as possible right now to get more concessions later. I don't know.
But I will give credit where it's due: I have flown about 15 recent segments on AA on mileage-run-quality fares, earned lots of upgrades and bonus miles, even gotten a couple Op UG's, and received pleasant customer service at almost every station. I don't think the fly is falling quite yet...