I'm mildly surprised there isn't more discussion around the one reason I'm planning on switching to Alaska Airlines' MVP program: companion upgrades suck in SM. The GF and I have done a bunch of travelling and I specifically avoid DL flights because of the terrible companion upgrade policy.

Maybe I was spoiled with NW but if you're going to call this a "best in class" program then take away my perks, I'm going elsewhere.

There is already a revenue-based 4th tier... invite-only Executive Partner. Similar to UA Global Services except the benefits aren't as nice.

Or, if you're a FT'er, you'd do 8 sLUT returns JFK-ATL-CVG-LHR-CDG-SLC-JFK and make DM for about $5,500.

"Since many of you asked about the systemwide upgrade certificates at the road warrior event, I thought I would share a few more specifics around these. Up through the end of this year, all Platinum Medallions will continue to receive six Platinum Medallion upgrades just as they do today � no changes. Beginning in 2010, rather than six systemwide upgrades, Platinums will now have the option of receiving four new systemwide upgrades or can choose from a set of optional benefits instead. For those current Platinum Medallions who earn the new Diamond Medallion status, in addition to the four systemwide upgrades, they will receive two additional choice-benefits including the ability to have six additional systemwide upgrades for a total of 10 systemwide upgrades."

OK, I'm thoroughly confused.

If I end up, Dec 2009, with 125000 miles, am I DM for 2010?
What PMUs will I get in Feb 2010?
Under what circumstances do I get the 10 SWUs mentioned above?
Can I carry 2009 MQMs towards 2010 status?

It's my age, you know

In the same boat. Already found AA for myself, no brainer. Buh bye Delta, after being an incredibly loyal customer with NW for the past 13 years, this last straw broke the camel's back. Hello AA, EXP level with unlimited domestic upgrades and 8 SWUs applicable to lower fares.

A publicized tier based on revenue might finally send a message that very frequent sLUT flyers are not the absolute most profitable customers an airline has and hence it's best perks should not be reserved for them.

It amazes me that I earn the same MQMs on a full J or F fare as I do on an M fare. The reward program incentivizes me to avoid paying the most profitable fare to the airline.

Everything but Y is discounted. There are even a couple Y fares that are discounted and don't clear immediatley. The reason it talks about this is for gate lottery where you have people on Y fares waiting for an upgrade. I really doubt that a PM on a U fare will clear ahead of a DM on a T fare.

If high $ passengers existed in large enough numbers to matter, such a tier would exist.

It doesn't. Face it, the subgroup that imagines itself to be so preeiminently valuable really isn't.

Delta tried in the past (read up on Leo & Robbie's sLUT fare debacles) to evolve SM into a system that was more "value" based. It backfired big time.

Everything over U & maybe T is inflated. It's a distortion of reality (and false advertising) to present a product as "discounted" when in fact it's sold at the normal price for the product.

.....

According to what I see DM would have same upgrade priority as EP. So why not axe EP and just maintain DM? Same thing pretty much right?

And then be all surprised when on my 9th sLUT return which I do direct, I can't use an SWU to get an upgrade into the J cabin.

I am Platinum and just flew back from Dublin Ireland yesterday (The U2 concert was great by the way). The entire 1st class cabin was empty with the exception of two seats, while coach was full.

I tried everything in my power to get a courtesy upgrade to Business Class. Spoke to probably four or five different people and was denied each time.

I do not understand why Delta would allow the plane to go empty in business class while hardcore, loyal flyers are in coach. This has been a stickler for me with the Delta Program. Y/B/M fare restrictions on upgrade certificates make the benefit a "perceived value" rather than an "actual benefit" one can use. This alone is enough to make me look at other airline programs.

I can't say that I'm surprised that Delta wouldn't pony up four certificates that could be used on lower fare types for Platinum and Diamond. The rollover is a nice touch, but not enough to make me remain loyal.

Delta has the belief that if they deny ALL complimentary international upgrades to its most frequent flyers, it will then encourage them to actually spend the several thousand dollars on buying the business class seat. After all, why spend an extra $2,000 when you're pretty much guaranteed to be upgraded for free?

The problem with this: Delta's management is delusional. Absolutely delusional. People are not spending the money on J seats, regardless of the fact that they know they will not be upgraded for free.

Delta: It doesn't work. Why not just let us use those SWU's for REAL upgrades? If someone is going to spend $3000 on an M or Y fare, they may as well spend $4000 on a J fare and avoid the hassle of finding a flight with the correct "upgrade inventory" anyway. It's a flawed system -- simple as that. The fact that Delta hasn't figured this out is appalling.

Howdy Jeff, thanks for posting here, at least, and providing clarity on future plans.

Unfortunately, this new SM DM level isn't very appealing. It does nothing to make me reconsider having effectively abandoned DL and loading all discretionary/choice travel onto CO this year, and already for half the next.

Except for my outbound to the NW farewell dinner at MSP....that must be on a redtail 752.

To the business of what your announcements mean for DL and former NW/DL customers...

First, I'm sure CO will respond with a more meaningful 4th tier of their own, since now everyone else seems to have one. But even if they don't, it doesn't matter.

You see, there are some features of SM that continue to be deal breakers with respect to your desired designation of "best-in-class."

Actually knowing how many miles I will need to book a family vacation using award tickets is the be-all and end-all of a FFP. I need this information so that I do not encounter nasty surprises when I try to book what the program promises I can have after a year of high-EQM flying. Such nasty surprises - like the 550k return for J class US-EU tickets, totals that are far above, and are not explicable by, any published SM redemption levels - cause frustration and disappointment when customers want to use their accrued mileage. They will certainly result in defections, frustration with SM and will cost business.

Tremendous gouging on EU-origin awards by means of various worst-in-class junk fees is another problem. Talk about making SM almost worthless!

DL becoming an AmEx travel club has very limited utility for a number of customers.

Take a look at the market to see what happens when a FFP is not good enough to drive custom at the margin. As KL are finding with ES, that an undifferentiated, or marginally differentiated, "J" product can only be sold by incentivizing customers through a good FFP. Historically, ES sales were driven by FD and FB before the program was eroded so badly. Now, nobody cares, so EZ, FR and others are still growing and the legacies are contracting.

It's going to happen Stateside too, and already is.... when the marginal value of the legacy product is inadequate to prevent customers booking LoCos like WN for their business travel. In the past, the NW flyers I knew would only do this when they had to...they'd find reasons to fly redtail, and now you know why. NW really did have the best in class FFP and we knew it. It drove our purchasing in powerful ways.

Every day when we needed to fly, our first stop was NWA.COM. We'd find ways to make the redtail work for us in spite of schedule/operational shortcomings. The quality of WP and the service of the Elite line was nonpareil. Now, DL.COM is my last stop - after WN, in fact.

That's why we drank the red koolaid so avidly.

DL does not seem able, or willing (?), to manage to deliver meaningful FFP features like those above - unlike not just NW, but other airlines I have experienced.

It's not just us at FT who know these things. Other industry professionals understand well. For example, you might want to listen to Scott O'Leary's take on the utility of DL upgrade instruments like the PMU in his recent webcast interview. He sees things from the customer viewpoint much more clearly than DL SM management seems to.

Still... good luck with this...competition is necessary, and I hope DL sticks around. Just like I don't want BA to fail completely. Although my negative opinion of their program is well known, we all need healthy competition.

Keep CO's fares low for me

My bet is that DL has done the math - OFTEN - and figures that while less folks are buying J, more are buying M and using miles/certs to upgrade. In fact it wouldn't surprise me if most BE travel was now based on YMB fares. That move and approving last minute day of departure upgrades, makes YMB fares even more flexible (no Saturday overnight, change a date and still have a shot at sitting up front, etc.). Yes, you can book business class through other means for the same price as M, but then you aren't likely the most loyal DL flyer.

That said, Jeff what would be the harm if the first 4 certs for PM and DM were usable on HKQ