Not trying to pick on you BUT, I believe, a few international airlines like Emirates will become more of a force. I see many employees in my company stationed in New York and Miami, are starting to use Emirates due to their service. This will concern the big 3 into being more competitive international and keep them in line. I know many think it is a long ways away but Emirates is already buying a ton of planes to compete international. Some major domestic markets are not far behind for these types of airlines.

but NEVER for international lines.....cabotage is illegal. Emirates will NEVER serve ORDLAX or ATLSEA

To whichever airline has the lowest fare and best schedule for what I want.

I already pointed out how Delta got several hundred dollars in revenue due to my belief that Delta status was worth something (that is, Delta purchasing loyalty). Had Delta been acting the ways you propose, it would have lost that revenue, and probably a few thousand more on other flights I'll be taking later this year where there's lots of competition.

Once loyalty is lost, it is much harder to regain it than it would have been to keep it. But those who can't see past the next quarter never seem to realize that.

You can debate how it will play out, but Bubba's post is right about where the airline mentality is heading. As the airlines merge and capacity is reduced while the economy slowly picks up and demand picks up, the remaining airlines will have far more control over the market and far less of a need to "compete". This is simple supply & demand at work. The airlines won't have to have offer as many perks to sell the seats because there will be fewer seats. The airlines are banking on the fact that if they don't fill those seats with current elites, they'll still fill those seats with other passengers and those passengers may be paying additional revenue for perks the elites are receiving for status right now. It will be interesting over the next couple years to see how that strategy plays out but right now, the major airlines are believing they can cut their low revenue elites and focus on the high revenue elites, while still selling those seats to either 1) the used to be elites who are no longer elites due to not meeting new qualifications or 2) other passengers who still need to fly. After all, why does DL care if it sells that seat to an elite or to a non-elite? All they ultimately care about is selling the seat. The elite perks help entice passengers to consider one airline over the others when choosing airlines, but the reality is now the airlines can be more selective as the economy improves, demand picks up, and yet capacity is reduced.

The consumer loves capitalism when it benefits the consumer, but hates it when it benefits the provider. That's what we're seeing here. When the economy took a dump, the airlines began offloading freebies to attract any business they could. I was able to take advantage of it and it helped me reach elite status for the first time. Now the economy is improving and the airlines don't have to give away as many freebies to fill the seats. Ultimately, airline loyalty programs are merely "marketing programs" under the guise of a "loyalty" program.

When you can get a Kettle party of 2 paying $50 for two bags, $58 for 2 economy comfort seats, and $30 for two meals and cocktails, "hundreds of dollars in revenue" pails by comparison, when they can get this every flight multiplied by dozens. Those seeing past next quarter see this......ESPECIALLY when there are only 3 airlines. You run to UA...one of their guys runs to DL because of the cheapest fare. You are all paying fees. Airlines Win.

I'm hopeful that one day this may change. Thought I'm not optimistic about the legislative changes needed changing anytime soon. It would force the U.S. airlines to step up their service or lose out to a better airline.

Would be awesome if it did, but now that AA/UA/DL/WN are financially stronger than ever and will stay that way with pricing power, lobbyists will make sure it never does.

Free upgrades are force multipliers. Airline, hotel group and cinema chain incentive packages all incorporate them. Rewards are offsets in revenue models alongside stats showing a significant number of points earned will never be redeemed. The actual cost of a reward to the company is significantly less than the perceived value to the member.

You will not "see a better F" without them.

There are relatively low barriers to entry in the airline business. When the economy picks up, new carriers will pop up, capacity will be added, and perks/loyalty will make a comeback as a strategy to fill planes. It's happened before and it will happen again, just as surely as capacity will contract in the next major recession, temporarily giving the carriers pricing power for a few years yet again.

Nothing to argue with there. Its going to be more fees and likely less 'service' until the next big economic downturn.

What business do you think has higher barriers to entry?

Just because someone pays a high fare doesn't mean they get great service though.

Last month a couple people in my office had to go to Toronto. One is a DM on Delta, other a PM. Apparently Delta no longer offers First on DTW/YYZ, or at least on the flights they wanted. Fare was absurd.

They decided to just drive to Windsor and try Porter. Fare on Porter was less than one-half of what Delta wanted (may have even been as much as 1/3rd of the price). They said they preferred Porter's coach product over what First class was like when Delta had two cabin service on that flight and they paid a lot less and it took less of their time on the trip since the airport porter uses is close to downtown.

I wish Porter (and other international airlines) would come to DTW

Now, THERE'S somethin' ya don't see every day!

A Kettle party of 2 won't fit into the one seat I use. And if they did, the government still wouldn't allow it.

But having revenue from both me and the Kettles would be even better. Some people recognize this.

And there are more than 3 airlines. Had I not been loyal to Delta, my last purchase would have been on an airline that isn't one of the 3 (and flies domestically). Given a lack of loyalty, there's no reason for passengers to stick with one of the 3 when there is competition on the particular route being flown.

The automotive and commercial aircraft industries, for starters.