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Thread: Impact of frequent flyer programs on airlines
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Old Apr 2, 2005 | 9:48 am
  #14  
CTPremEx
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Originally Posted by Globaliser
For example, if you can depend on unlimited free upgrades into premium classes, why would you spend the money buying a premium class ticket? Is it any surprise that some airlines fill their premium cabins all the time, but sell very few premium class fares?
I am curious - have you ever been elite on a FF program that provided unlimited free upgrades? If you have been elite on one of these you will also have known that fare class is an important ranking factor and only the truly stupid would "depend" on free upgrades.

I can only think of USA-based, primarily domestic flights that offer unlimited free upgrades - and the pricing dynamics of Economy fares plays a much larger role in this than "conditioning the markets to ruinous behavior for the airlines".

If you actually believed your thesis, explain why all N.A airlines don't have unlimited free domestic upgrades - after all the market would reject any airline that does not offer this - Econ 101?
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