I would agree that having a FF program does not help with getting new customers and NOT having a FF program would put a carrier at a disadvantage. However, since "...every carrier has one", the airlines could be considered to be at parity with each other right now. Therefore, some of them SHOULD already be doing the things (like competing on service) that Joe B. mentions in his article. But it sure doesn't seem like they are. Why would eliminating FF programs suddenly change this? Fact is, it wouldn't change one thing.

Further, if the FF programs were such a drag on profits, they would be eliminated by each and every airline almost immediately. That isn't happening either so we can conclude one of two things: 1. That FF programs are profitable in their own right for each and every airline and thus eliminating them would reduce profits (AA is the only airline I am aware of who has made a statement to this affect; the others have been mum)
2. That some airlines run a profitable FF progam (i.e. AA) and others do not. If so, this puts the profitable FF progam and thus the airline with the profitable FF program in a much better competitive position. It suggest that a FF program WOULD be a competitive advantage.

It seems clear to me. Although I like and agree with most of what Joe B. writes, he is dead wrong on this one.