US airline execs are finally realizing that the days of giving their products and services away for free are soon to be over. Presumably just a matter of time until this will also mean following the example of other parts of the world: eliminating free award tickets and cutting free upgrades to first class.

In the new fashionable concept of "a la carte" pricing, being offered mileage earning on a ticket can also easily be offered as a "pay for" option based on the fare class purchased.

"The rising oil prices have negated much of the reorganizing work performed by airlines in and out of bankruptcy protection. That includes the $6 billion that American saved as a result of its mid-decade reorganizing."

“Fuel prices erased all of what we have accomplished,” Mr. Arpey said.
“If we are going to have an airline business, our customers must ultimately compensate us for the cost of flying them around the country and around the world,” Gerard J. Arpey, chief executive of American Airlines, said at the conference.

http://www.nytimes.com/2008/06/19/bu...tml?ref=travel

Over the last 8 years, premium flying has shifted dramatically away from commercial aviation towards private business flying.

"In 2000, commercial airlines flew 79 million so-called premium passengers (defined as those flying first-class, business-class and full-fare coach) on one-way domestic trips. Last year, despite a sharp increase in overall passenger traffic, that number was 42 million. Premium passengers, incidentally, account for about twice the revenue per passenger mile as non-premium passengers.

In the same period, the estimated number of passengers flying one-way trips on business aircraft climbed steadily, to 17 million last year — or 41 percent of the total number of commercial airline premium passengers. In 2000, it was a mere 15 percent."

http://www.nytimes.com/2008/06/17/bu...tml?ref=travel

Will we soon see commercial First Class eliminated on all but a very few transcontinental flights where those few seats are seen to be truly competing with the business jet service, are priced and staffed accordingly and are all reserved and paid for in full by paying passengers? Or will all planes move to economy and economy+ only and First Class only exist in history books (and the cabins of private/corporate jets)?

If and when NW=DL eliminate not only FC upgrades but FC service and potentially charge for the both the ability to earn miles and spend them, what will keep you playing the FFP game?