Originally Posted by exerda[/quote
I don't see any problem in courting the infrequent-flyer business, per se; I've long said that airlines need all customers, and that those designed for niche-only markets have failed almost every single time (think those all-C TATL airlines, or Hooters Air, for example). Jeff & Co. have decided that they don't need loyal-but-lower-revenue pax, or even HVF who happen to be flying today on a cheap fare (and they continue to think that; see the recent suggestion that they hold back cheaper tickets so they can sell more last-minute fares, as if there's a magical demand to fill all those last-minute buckets).
There's also the problem that the current management seems to be very transaction-oriented. You see this in the way they punish a HVF who isn't flying full-fare today, or how they look at their glorious "network" on a per-segment basis rather than holistically. This is short-sighted in business in general and in the airline world in particular.
Delta has effectively adopted the same loyalty and pricing model you describe for UAL. Why has this turned out differently for them? Better meals in domestic first?