Originally Posted by apirchik
This is the way to whole industry is going - towards revenue based rewards, not number of flights/segments/miles/points. CO, LYs biggest competitor on it's highest revenue route (NYC-TLV) is charging $$$ for upgrading from most fares excluding the 2 higher ones ($1200 roundtrip and up) - the charge starts from $200 one way in addition to the miles.
LY's program is one of the best in to world in the ratio of number of flights you need for getting a reward ticket. The major downside was the 1 year limit on point accumulation and now it will be 3 years.
As far as I understand it, with CO, the $$$ they charge for the upgrades essentially enables all tkts to be upgraded. Meaning, if you've got the status and want to use your miles, but you bought a "cheapie" ticket, then all is not lost. With El Al, (the new as well as the old) if you bought those "cheapie" tickets then there is NO CHANCE AT ALL to upgrade, not even to pay the $200 or $300 that CO charges to get into "upgradeable league." Which means, that Continental, like AA and others DO reward based on the long-term (annual revenue, segments, etc.) whereas EL Al no longer relates to their most consistent passengers with any degree of wanting there business.
All my PL status gets me as of yesterday, is biz-class check-in and lounge access. The LY people are NOT making sound business decisions and seem to be more concerned with their short-term numbers (for privitazation?) then long term prosperity.