Jarvis puts his finger on the root of the problem the airlines have - and it's the same one the record labels have, and Microsoft - sheer inertia. They like running things "the way they've always been", and when change enters the business picture, they go straight to denial, rather than to any attempt to fix things. Digital music a threat? Try to sue it out of business. Web based applications a problem? Try to build more walls around Windows. This quote from Umair Haque sums up the problem nicely:
The dynamics of old boy's clubs are almost deterministically predictable: they fight tooth and nail against risk, against the radical, against any kind of change to the status quo. They're great at "monetization" - cutting deals - but the last thing old boy's clubs are good at, unfortunately, is sticking up, come hell or high water, for innovation. From music, to publishing, to food, to autos, the outcome of locked-down boardrooms has been innovation stifled and suffocated
When the business environment changes, you need to be able to adapt. Those who aren't, die.