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Old Sep 26, 2014 | 7:04 am
  #68  
FlyWorld
 
Join Date: Jun 2005
Posts: 4,645
Originally Posted by DELLAS
As expected ! Still very easy to retain due to low tier miles requirement even at the higher rate. Most Europeans will be easily able to get the lower rate with 4 sectors on a small mileage run.
Seems the new program is designed to drive incremental revenue. If they are smart (and, at this point, I highly doubt that), perhaps they calculated that the cost of providing this *G benefit is less than the incremental benefit of driving people to fly A3 who otherwise wouldn't. For a certain segment of customers, this seems plausible. For me, based out of SFO, the value proposition is totally gone. But, for a European who can choose A3 as a convenient alternative to another carrier or who might enjoy an annual mileage run to a Greek island, it makes sense.

I'd like to know how this whole thing started. Was the "too good to be true" program something they thoughtfully designed to invest in achieving a specific goal? Or, was it created by an idiot who didn't understand basic economics?
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