Yet, much of their profitability is still outside of the control of airlines, like supply/ demand on routes, inflexibility to change routes fast, the oil price, etc.

Many of the so-called better service airlines, still have a disproportionate reliance upon certain routes (most of the Middle Eastern airlines are very dependent upon the region and Indian subcontinent). Also, I was told that one of the Middle Eastern airlines increased rates by 10% in the middle of the last economic slump, and hardly noticed any decline in demand – surely that suggests passengers are prepared to pay for service – up to a point.

Then it is also difficult to eliminate other factors, i.e. some Middle Eastern airlines put as much capacity and frequency into the market as it can bear, believing that scheduling largely drives behaviour and may mask many other factors…

In the end, I have to believe that even though others factors play a role, service will prevail when consumers face a choice. I would rather offer better service, than to be left in the void of the commoditisation of choice, when your entire existence as an airline becomes anecdotal. As a marketer, why would you want to deliver a bad service, all else being equal? Better service also need no longer cost more…