Is this topic designed to accumulate a list of things frequent flyers want, to be whittled down for implementation, or do you want us to present a business plan?
That is, if Independence Air implemented half the stuff in this thread, they would go broke pretty quickly (assuming they wouldn't be able to charge higher fares to compensate).
Take the 3% cash rebate for instance. This is ridiculous. 3% off the top for an airline is like cutting off just one leg of a marathoner. Not only would you be "giving away the store", you also make accounting more difficult for businesses. A $100 ticket would be a $97 tax deduction.
As others noted, making non-expiring points easy to use in small amounts and transferable will increase the redemption rate to practically 100%. This means costs go up.
Personally, I only use my miles to fly to bizarre destinations in coach or normal destinations in First Class, so I'll pass.
[This message has been edited by JS (edited Mar 07, 2004).]