Originally Posted by
Wpgjetse
Your math is not on pax that are working the system. If you are SE, but mostly fly UA, AC is charged every time you enter a UA lounge. Segment flyers also do not generated a lot of revenue for AC, but have high cost benefits. I would guess you have never owned your own business if you don't understand cost control.
Thats right. Because I have never owned my own business, I don't understand costs. Or profit. Revenue vs. income. Please. That's not a valid logical conclusion at all.
I have said this many times in this thread, but it is worth repeating: if AC wanted to address the actual problems, they could have. There are lots of ways to eliminate segment running, or IKK abuse, or whatever. But they didn't. The cut benefits by 75%. For everybody. I can't think of an analogous situation in any other business where--in an effort to reduce the costs of a very small segment of customers--a very large segment of customers had their value proposition reduced by such a large amount.
My conclusion is that they were not interested in just reducing the number of "abusers" (I would call them users by the way; there is no need to tacitly condemn them by adopting the vocabulary appropriate to an AC employee). They were interested in doing what they did: massively reducing the benefit of their FF program, for everybody.