Traditional full-service airlines are an endangered species in the skies, and have been for decades, as industry consolidation proves. But a passenger perception gap still threatens the business. The legacy airlines remaining must focus on better brand definition to improve passenger satisfaction, if they are to survive.
Passengers like to have nice cabin environments, but they don't seem willing to reward airlines for offering them. It would appear, most often, that passengers choose airlines based on affordable fares and convenient routes. As IATA’s Tony Tyler said, you get what you pay for.
We have to agree that there's no such thing as a free lunch, especially not on a plane. Airlines need to turn a healthy profit--and keep investors happy--to pay for product and service improvements. Even so, just saying everything is better doesn't make it so. Airlines will need to work on changing negative passenger perceptions, rather than pretending them away.
There is big money to be made here for whatever communications firm can help airlines carry a winning message, without making an omelette of it. But some of the more disingenuous arguments the organization makes will prove a pickle for whatever firm tries.
Sabre's Klein is correct that IATA won't be driving the implementation of the next wave of ancillary and personalized services from airlines. But the track record shows that Sabre won't likely be doing so, either.