All airlines should adopt this approach with pax. Initially there's some outlay for hotel rooms, cabs and meals but in the long run they will be better off because passengers will come back and fly that airline because they were looked after previously.
Recent entrants to the market who cancel flights and leave pax to fend for themselves or don't take ownership of the problem etc end up losing big time with all the negative press, however it seems that some airlines always have to learn the hard way.
