This whole thing (on this thread and others) has essentially turned into a political "talk show" - two sides, with opposite views, talking about each other, and not the issue at hand.
One should be able to speak positively about these changes without being called an "CO apologist".
One should also be able to speak negatively about these changes without being called a "snob", "elitist", or "deadwood".
Why do airlines have frequent flyer programs? To encourage people to fly that airline frequently.
When FF programs started, all airfares (and therefore, revenue) was "high". Therefore, every elite contributed serious money to the airline's balance sheets and the airlines prospered and gave us nice benefits and services.
Now, thanks to competition with other airlines, other forms of travel, and the "economic realities" of the moment, much of that revenue is now much lower. Even the most frequent of flyers can contribute less revenue than a low-level elite from two decades ago. Yes, the airlines are the ones offering these low fares, but as so many like to point out, that income is better than flying that seat empty, even if the income does not cover the total cost of providing the service (wages, fuel, fees, lease/mortgage payments, etc.).
The airlines have responded to this by cutting routes, benefits, and services. For the majority of flyers - elite and non-elite - this can be rationalized due to their lower aggregate revenue.
Yet the airlines know that there are still those who pay the full price, either due to needed flexibility or because they are fortunate to still be in a position of not caring what it costs. And the airlines desperately want those people, because their income can cover scores of lower-aggregate fare flyers. The trick is to get those people to spend regularly on your airline, and not "one-off" it cause your number happened to come up in the "schedule lottery".
Unfortunately, a frequent flyer program is not the way to do that. It penalizes the man who flies 10 500-mile R/Ts a year at $1000 a pop and earns 5K FFMs, while rewarding the fellow who flies two 5,000-miles R/Ts a year at $500 a pop and earns 10K FFMs. Flyer A spends $1000 a trip. Flyer B spends $1000 a year. Flyer B has more FFMs and higher status, meaning they get more perks than Flyer A, even though they spend 1/10th as much money.
Obviously, these numbers are meant to emphasise an unlikely extreme. But when all that matters is the miles you fly - and not the fare you pay - more often then not, the person who spends less gets as many benefits as the person who spends more - and often does much better.
Restricting mileage earning as part of elite qualification is one way to try and address this, but even it is not perfect - or sometimes even adequate. Using my example from above, Flyer A still spend $10,000 a year and earns 5000 FFMs. Flyer B spends $1,000 a year, and also earns 5000 FFMs (instead of 10K). Flyer A would win any tie-breakers (due to fare paid), but Flyer C could fly four 5K trips, earn 10K miles, pay $2000 a year, and still get better status and perks than Flyer A.
United seems to be pointing in the right direction with UGS - United Global Services - which is granted to (supposedly) the top 1% of revenue generators in UA's FF program. It gives them a 20-hour upgrade window above 1Ks (UA's highest FF elite level) to help ensure they get that First / Business class seat. It also gives them a dedicated number to call. Unfortunately, the initial roll-out was a disaster, because it actually restricted "waivers and favors" - the call agents knew every rule in the book and enforced them ruthlessly. In fact, UGS should be where "waivers and favors" are granted, and additional benefits like free access to International First Class lounges, Red Carpet Clubs, and Arrivals by United facilities. The point of UGS should be to make these people - your top 1% in revenue - to feel like they truly are loved and appreciated. The revenue UA is brining in from these people more than covers the cost of providing them the service. To these people, the First Class seat is not the "be all-end all" of their flying experience. Making them happy on the ground, at ticketing, check-in, and baggage claim should be just as important, if even more.
And it can all be done without affecting your Elites, since they never had access to these benefits in the first place. And it makes the UGS-folk feel more "special", and let's face it, everyone likes to feel "special" at least once in a while.
Especially if your forking over a lot more cash then the next person.
[Edited for spelling]
[This message has been edited by SEA_Tigger (edited 09-21-2003).]