I think people have lost sight of what an airline is. In its purest form it is transportation from point A to point B. An airline has to get the basics right first before anything else. If you can get the customer to where they want to go safely, on time with their bags you are doing what you set out to do. Now you have to create additional value to woo customers to choose your airline over another even if your airline charges more. The key is to find something people are willing to pay for. That could be frequency, comfort, FF plan or entertainment. There is also a limit to how much people will pay for these items. Even if you have a "superior" product most people will not pay a $100 premium for some of these value items.
I think you are exactly right...but here's where the "US Philosophy" breaks down: "
Now you have to create additional value to woo customers to choose your airline over another.."
Unless the airline can operate with efficiencies others can't...therefore being able to be profitable at lower prices..the positioning and identity won't work.
In other words, if a traveler is buying "transportation from point A to point B," say, PVD-FLL....one airline stops at EWR, another PHL, still another CLT...prices are the same, times are within 30 minutes of one another....
How does a consumer then chose?
I would argue, and by way of US' actions, they would agree, consumers WILL chose based on value...value added. Put it this way, if people DID NOT really care about "free beverages," WHY are they back???
The fact is, US offers the lowest and worst value, sadly. While Mr. Kriby continues to pontificate that 99.9% of pax will chose "price and time" before everything else, their actions speak otherwise...as do the pocket books of millions of passengers.
It is transportation...ultimately, I do pay to get from point A to point B....but if US offers the same price as, say, CO...and CO has better seating, better service, better overall value....why would I chose US?
Again, the positioning or "identity" of US means this:
"Fly the airline ONLY when there is no other way to get from point A to point B or when the price is so insanely low, you'd need your head examined if you chose someone else."
At the end of the day, when Mr. Kirby says, "99.9% of all pax chose their transportation based on time and price," he's essentially bolstering my thoughts of when someone should chose US Airways...and at the same time, his ideas are counter intuitive to even HAVING a FF program....not to mention "free" drinks, etc.