Airlines developed FF programs (with benefits) to increase revenue, by "increasing customer loyalty", so that additional tickets would be purchased. Passengers who stay with a given airline (or its partners) often (not always) do so, because of the FF program benefits and perks, which often increase with increased flying on that airline.

With Aeroplan, and the perks that it offers to passengers at each tier level, I fly exclusively on AC domestically, and AC or Star Alliance partners transborder or overseas. As a passenger, if there was no FF program, or one with virtually no benefits, assuming I could not (with my flying patterns) enroll on another FF program and earn a certain minimal degree of benefits, I would shop around for any given flight that I might take; for domestic flights, I am sure I would split some of my total business between AC and some other airlines, and internationally, between AC, Star Alliance airlines, and other airlines.

As the thread which I started (see link below), suggests that the FF benefits with Aeroplan (since AC took over CP) are overall decreasing (one may argue that the flight pass does offer many of the Aeroplan benefits that have been eroded over the years, and more - I would argue that the flight pass is not a FF perk or benefit - any passenger is entitled to the benefits of a flight pass).


link: http://www.flyertalk.com/forum/showthread.php?t=579646

I am not ashamed to say that I look forward to AC/Aeroplan adding (back) the lost FF benefits (which have been lost over the years); I hope that Westjet does offer a "true" FF plan in the near future (including those benefits associated with global alliance airline partners), this competitive pressure might be the inducement for AC to reverse the trend of changes to Aeroplan benefits, seen in the past few years.