United Airlines CEO Scott Kirby has a pointed message for airlines trying to become more premium: copying a better seat does not mean you have copied a better airline. His comparison to putting a Four Seasons room inside a Motel 6 is rather provocative, but I think his underlying argument is sound, provided United remembers that the same standard applies to its own flights.
Scott Kirby Uses Four Seasons And Motel 6 To Explain What Makes An Airline Premium
During United’s October 21 earnings call, Citi analyst John Godyn asked Kirby about competitors pursuing ambitious turnarounds by adding premium seats and changing their fares and fees.
Kirby was dismissive. He argued that an airline cannot selectively copy a few features and expect to reproduce the business behind them.
Then came the hotel analogy:
“ You can’t just take a Four Seasons room, copy the room, put it in a Motel 6, and expect it to be a Four Seasons. You need everything else that goes with it, to be successful.…