At risk of getting academic, US Airways' new policy and the attitude of Mr. Baldanza's response indicate a complete lack of understanding of fundemental product positioning theory.

Let's focus on the idea of product differentiation. What does USAirways do, DIFFERENTLY and BETTER than the other airlines, to EARN itself our business.

1. They have strong 'fortress' positions at their hubs. This position allow them to differentiate by the sheer convenience of non-stop flights.

2. They have a loyal cadre of Dividend Miles members who go out of their way to fly US in order to maintain the limited but valuable perks associated with elite status. (One could say that the cost of switching to another program is relatively high ... emotionally and logistically).

Hmmm.. That is a short list.

Now let's look at the competition. The competition has differentiated itself from USAirways as follows.

1. AA, UA, and Midwest Express offer much greater seat pitch.

2. AA, UA, DL, CO, NW, AS offer a wider array of Frequent Flyer award redemption opportunities.

3. JetBlue, Airtran, Southwest, America West and National are almost always much cheaper for the last minute traveller.

4. None of the other major airlines are as close to liquidation as US giving them some advantage in the 'peace of mind' arena.

5. Nearly all the other airlines offer a more flexible, customer-centric approach to handling schedule changes and elite mileage accrual.

So, WHY would USAirways enact a series of policy changes that differentiates them IN A NEGATIVE WAY from their competition? If Mr. Baldanza was serious about his comments to reward the higher-yield passenger, well then give us the specifics on how USAirways will change to do so!

As it is right now, these tactics do not apper to be a strategy at all. In fact, I believe that the chagnes USAirways has made over the last several days, if not reversed, will become the material for well-used case study on how NOT to position an airline for competitive success.