The CO management team is trying to do the best with what they currently have - that is a limited fleet of wide bodies and focusing on international expansion with their 757 fleet.

That said - the issue is then the pricing of their product. CO has pretty much given up on the true premium market - ie International F, premium transcon, etc. UA and AA pretty much have this limited market, particularly for transcons. CO has given up on $2K+ RT transcons and now focuses on offering discounted F - in prices from $500-$1300 RT - using revenue management to maximize potential revenue - at the expense of having available upgrades.

I suppose CO has the numbers - but the long term implications likely have not been determined - loyalty, etc.. If you travel on CO in F you pretty much have no flexibility on change - as the seats are priced to sell out. Thus buying an F seat - you get it at a discount price - but lose the flexiblilty that flying in F used to provide - easy change of flights. When F is priced very high - then few buy - but what they buy is pretty much a guaranteed seat when they want and great flexibility to change at the last minute. Then all those unsold seats go to FF upgrades. CO is just not in that market anymore - AA and UA still are.