The comments above that BA's frequent flyer program has served it as a kind of insurance policy really resonate with me. As a gold member, I have continued flying with BA despite its degradation into a thoroughly mediocre airline. In fact, I have continued flying with BA despite its dirty airplanes, its truly horrible IT, its meltdowns in the face of any kind of weather, its wholesale termination of its most experienced (and generally most gracious) cabin crew, its excruciatingly slow customer service, and, of course, brunch-gate. So today is a kind of independence day for me. I know that the grass isn't always greener, but I know that it is greener often enough. There are plenty of airlines better than BA that charge roughly the same price for tickets, and I will give them my business instead. (At the same time, I have an enormous stash of Avios, and I will spend every last mile that my custom as earned me.)

I have no idea whether BA's decision is wise. I will guess that, in the short term, BA might be pleased with itself and see continued growth in profits. I will also predict that, in the long term, jettisoning the loyalty of its non-corporate travelers will be seen as short-sighted. Just as BA is focused on its bottom line, so are the corporations who fly them.