But may I ask what is ‘operationally or economically’ sound about upgrading already heavily subsidised staff and extended family tickets instead of offering those seats to full fare paying customers?
Ummm, because it negates the requirement for the full fare paying customer to actually fully pay for the product. You heard about the "yield" probems with airlines at the moment? You don't think some customers have cottoned on to the fact that they can presently buy a $1000 fare to LAX, and they'll get upgraded anyway?
You've never heard of "overbooking". Where do you think economy class oversales go when there are seats left up front? That's right, we put staff into business class and leave the regular customers behind...
Wind up alert indeed.