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Old Jul 20, 2015, 1:23 am
  #8  
StuckOnSegments
 
Join Date: Sep 2012
Programs: DL DM, MM
Posts: 2,970
Originally Posted by Canarsie
“Loyalty” should not be the primary reason for travel. Cost, convenience and amenities are only some of the factors which I believe are more important in terms of choosing a flight which is right for you.

I am really not sure that Delta Air Lines will miss any Diamond Medallion — or any other elite level status members — who migrate to a different airline as a main airline. The reason is chiefly due to the billions of dollars in ancillary fees which comprise a significant portion of its revenue...

...and guess what? It is not the Medallion elite level status members who are paying those fees — regardless of how many thousands of dollars of spend they contribute to the revenue of Delta Air Lines annually in terms of airfare, which I would guess pales in comparison.

Let’s face it: frequent fliers comprise only a small percentage of the customer base of Delta Air Lines; and before the advent of ancillary fees, contributed a larger portion of the revenue.

Of course, I may be incorrect; but that is simply my opinion.

I wish you all of the best with your new choice in airlines, Esltroy.
This is 100% correct. With today's airline market(ie controlled capacity), filling seats isn't a issue as long as you provide a competitive in-flight experience(Delta and all the legacy carriers do, Spirit is close)

By Devaluing their FFP, Delta is actually avoiding adverse selection. The least valuable customers in terms of benefit consumption will leave Delta. This benefits them. Since the seats will get filled(as long as the price is competitive), they don't care. The additional marginal revenue isn't worth a better FFP.

I don't like it, but it is what is it.

Last edited by StuckOnSegments; Jul 20, 2015 at 2:47 pm
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