Alas you're correct. It can be fun to speculate though.
And speculate, I shall...
What would have been Job's product differentiation? Frankly, there is a reason as to why the airline business has become a race to the bottom as the flying public wants cheap seats which have reduced air travel to a homogeneous, near commodity good. Not to say there aren't niche markets as with JetBlue who attempts to present itself as younger, happening, technologically advanced in-flight entertainment, but the majority of the general public would prefer cheap fares, while the business traveler desires frequent flyer miles, convenient times, upgrades and more non-stop flights to business centers.
Plenty of start-up airlines attempted to tap into that lucrative business traveler with almost luxurious service, only to have legacy airlines beat the new competition with 3X points on those same routes, free upgrades, money losing fares, etc. until beaten into Chapter 7. Some do even more with expensive legal maneuvering, as a case in point with the bAAstards who attacked Legend Airlines they dared to fly all first class DC-9s from DAL avoiding the Wright Amendment restrictions. I have probably disgressed too far from the topic, as Steve Job could have afforded to take-on AA and subtained heavy losses for decades, but why bother, as he was in the business to make money!
Jobs was able to create a product which didn't exist or much like JetBlue, found a niche market which appeals to younger, happening, tech savvy people. Think of it this way... PCs still out-sell Macs by a large ratio, and it isn't because the PCs are better, much like the number of basic airline seats are out-selling seats on airlines which offer IFE and free Wi-Fi... it is about other factors, and costs being a large part of that equation.
Finally, Jobs would have made Carl Icahn look like a saint amongst the airline employees. Jobs was abusive, mercurial, and highly demanding, and he contracted-out pretty much nearly every unskilled and semi-skilled work position possible, especially in manufacturing. I think he would have had little patience for labor unions, and would have rewarded only those particularly talented executives who exploited a brand and created new product lines for which the public was willing to pay a premium. Anyone else would have been a simple cog in the machine. Here's a crazy idea... Jobs would have created a "virtual airline".. tricked-out planes, contracted nearly the entire labor force through a wholly owned subsidiary much like Delta Global Services and Worldwide Services (formerly owned by American). Someone starts talking union, "Your company's services are no longer needed."
Personally, I think the best airline CEOs understand that having friendly, helpful and pleasant workers do not cost anything extra directly, and why Gordon Bethune is considered to be a God amongst airline executives... but that's not something which can be taught in business school.
So Excogitates Jester.
