GUWonder, that is a GREAT observation!
Delta must have concluded that chart-based redemption at traditional prices could not be maintained profitably. I don't understand the reasoning, but I wonder how in the world it would not apply even more strongly to redemption for travel on partner airlines. Gary seems to be hinting that the next shoe to drop is taking the value out of partner redemptions.
It's almost as if Delta wants to drive all its customers to Citbank's Double Cash card.
I have no doubt that DL will hit hard with devaluing the DL partner airline awards too.
DL did not conclude that chart-based redemption at traditional mileage prices could not be maintained profitably; rather, it could be maintained profitably. But this isn't about maintaining profits and profit margin; instead it's about hitting targeted objectives to increase pay offs for current management and (non-longer-terms) shareholders.
Being profitable isn't sufficient; it's a matter of being more profitable than before. That is why devaluations of the program and its peers is so very expected from the consumer perspective. It doesn't take a thought leader in anything to understand this.
