Originally Posted by
ajnaro
I agree with sdsearch's analysis. But still, it's hard to understand why airlines would systematically discourage the loyalty of their most profitable customers and cultivate the loyalty of the less profitable economy class customers. Unless, they're aiming mainly at the loyalty of 'full-fare' (Y and B) class customers and discouraging both discount economy and premium fare customers. As for "giving away little while promising a lot," I certainly agree with that conclusion, but it is sure to kill off the appeal of miles/points in the medium term. I, for one, now only collect miles when I can't avoid them (i.e., for flying). And I use them mainly for friends who are willing to accept economy seating in return for a cheap (not 'free' anymore) ticket.
Many economy customers are actually paying for tickets and will remember good service. I've been on the EWR-SIN all J flight. The flight was 60% full at best and most customers either paid with someone else's money (like I did) or or redeemed an award. The route was more or less subsidized by coach tickets purchased elsewhere in the network, and it eventually wasn't worth it. Airlines need customers willing to pay to sit in coach to travel somewhere. Most customers aren't premium.