Chaos in the skies - the airline industry pre and post 9/11
Case Study
Chaos in the skies- the airline industry pre and post 9/11 1. Introduction
The terrorist attack on the New York World Trade Center and the Pentagon on September 11, 2001, when civilian planes were turned into guided missiles flown by suicide bombers driven by religious fundamentalism and hatred for the United States not only seared themselves into the consciousness of the American people, but into the economic and business fabric of the country, and as a result, of the world.
While the United States economy was slowing in the months before this tragic event, the aftermath of the bombings led the economy into a depression.
The airline and travel industry were the
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3. Situation after 9/11 STEP
3.1 Social Factors
The attacks of 9/11 led to a declining of bookings of 74% of US domestic flights and 19% worldwide in the first four days. People were afraid of using air travel. Furthermore the longer check in times because of higher safety standards increased the door–to-door travelling time and customers were looking for alternatives such as video conferencing, using the car or the train. Furthermore customers were not willing to pay the prices they paid before 9/11.
3.2 Technological Factors
Airlines invested huge amounts of money into new security systems and safer cockpit doors the changeover of the aircrafts caused enormous costs.
3.3 Economical Factors
After 9/11 the economy was facing a recession. Stock market was completely closed for a week, sectors like insurance airlines decimated. Many airlines were facing bankruptcy. Furthermore insurances raised their premiums up to 500% which increased operating costs for airlines.
3.3.1 Competitive situation
Full Service Carriers suffered from the customers fear people avoided long-distance flights, also business flights decreased. To counteract the decreasing bookings and the demand for cheaper prices the Full Service Carriers introduced a dramatic cost-cutting program, including reducing employees. The Low Cost Carriers acted different from the Full Service Carriers, they started campaigns to rebuild the customers’ trust into flying and offered attractive and very cheap
First, the economy in the United State was affected after 9/11 especially New York and Virginia. The stock markets and financial
The airline industry is one of the largest global industries in the world. Airline companies in the airline industry have gone through challenging obstacles in the past decade. Many changes have occurred within the industry and increased regulations have driven up cost for the industry. The attacks on 9/11 left the industry in shock when planes were used in terrorist attacks in the United States. These attacks changed the mentality of the industry and shifted the focus towards safety. Safety was also a major concern in the industry with the breakout of SARS in 2003 and the H1N1 flu in 2009. The airlines had to ensure that public health and safety of the travelers were
Air Travel is one of the main things that was majorly affected by 9/11. One of the main components of air travel that had changed was security. Almost immediately after 9/11 the government issued Aviation and Transportation Security Act which then lead to Transportation Security Administration, TSA for short. Because of this security check became stricter and new procedures were introduced and enforced. Some of these new procedures are as the following: weapons and destructive item checks, only passengers with tickets were allowed to go through and pass security, restriction on liquids and contaminants in luggage, and guidelines passengers must follow.
September 11. 2001 was a major turning point in American History, and its political and social impact can still be felt today. The tragic event shook the entire country on the civilian and federal level. Before 9/11 many did not think that a plan of terrorism such as that of Osama Bin Laden's would be able to come to fruition because they had great trust in American security. The destruction came as a wakeup call to the federal government and American citizens themselves. National Security became the first thing people thought of when they traveled, and civilians looked to the government for reassurance that they were safe. The federal government's plan of action was to pass a series of acts that would go on to create the Department of Homeland Security and Transportation Security Association. Along with the creation of more strict security measures came the question of "who is a terrorist?" within the country. The formation of the DHS, TSA, and increase of Islamophobia are some examples of the lasting effects that 9/11 had on the country.
On September 11, 2001, there was a terrorist attack against the United States. Hijackers flew a jetliner into each of New York’s World Trade Center towers. Simultaneously, a third jetliner crashed into the Pentagon in Virginia. Due to these horrific events, thousands of people were killed. In response to the attacks, the United States declared a “War on Terror.” However, the actions of the U.S. did not come without criticisms from the people of the nation.
The events of the terrorist attack on September 11, 2001 changed not just the American way of life, but the way in which terrorism will forever be viewed. Moments after the first plane changed our way of life by crashing into the first tower, it also changed the way people will live their lives for many generations from that point forward. For the first time on Continental United States soil, America was under siege.
On the morning of September 11 2001, terrorists hijacked four planes from American Airlines and United Airlines with the goal of ruining the U.S economy. Two of the planes achieved their goal and targeted both towers of the World Trade Center along with the Pentagon, resulting in the death of approximately 2,975 people. The events that took place on this day had a great impact not only in America, but around the world as well. After this day there were major changes in air travel, new government regulations, and a financial crisis.
On the morning of September 11, 2001, an Islamic terrorist group known as al-Qaeda carried out a series of four attacks on the United States. The most well-known attack is when two commercial airline planes crashed into the Twin Towers in New York City. Many innocent lives were lost and families were torn apart. While many Americans were determined to show their resilience towards the attacks, this is a day many Americans will never forget. Although the attacks happened sixteen years ago, Americans are still dealing with the impacts these attacks have had on life in America. The 9/11 attacks have had several long-lasting effects on everyday life in America, some of which include an increase in airport security, a change in national security, and an increase the fear of terrorism.
On September 11, 2001 (9/11) four planes were hijacked and three out of four crashed into buildings, killing more than 3,000 people. Economically the immediate consequences of 9/11 were a massive drop in the stock market, crippling losses in the airline and other transportation sectors, and widespread uncertainty. The Bush administration and Congress responded with a law that bailed out the airlines, and the economic issues temporarily receded politically.
September 11, 2001 was a milestone in the history of the United States, which experienced a collective shock and trauma that has never been forgotten. Not since the McCarthy era in the 1950s have there been such restrictions on civil liberties, including the protections of free speech and against unreasonable search and seizure in the First and Fourth Amendments. The entire airline and tourist industry was driven to the edge of bankruptcy and would not have survived at all without a major bailout by the federal government. After that time, the airlines decided that they could never permit another attack like this or they would be driven out of business. As it was, their stock prices collapsed and passenger schedules did not return to pre-September 11th levels for four years. All previous security plans were judged to be useless and inadequate, and were taken out of the hands of private security contractors and turned over to the federal government. New and more restrictive laws like the Patriot Act came into being, and the U.S. launched an all-out war on Al Qaeda that has continued for eleven long years, often using methods like torture that violated domestic and international law. Given the magnitude of the disaster and the collective trauma the country experienced, along with the fears of Al Qaeda obtaining weapons of mass destruction made these new restrictions inevitable, and nothing about them was surprising except that were not even more severe and repressive than they
September 11, 2001, was a horrific event that rocked the world and the way people viewed the safety of airline travel. The airline industry was hit the hardest after that day and it was uncertain if they could regain their customer’s
P. Airlines are subject to extensive regulatory and legal requirements issued by The Department of Transportation and The Federal Aviation Administration. The industry has to comply with laws and regulations not only domestically but also internationally which requires significant spending. After 9/11, many new security measures have been put into practice, resulting in expenditures for equipment, training the personnel, federal and airport charges, security taxes and etc.
The airline industry has seen drastic changes since September 11, 2001. The government ordered a complete shutdown for three days of not only all commercial aircraft but such carriers as domestic flights and emergency aircraft. For days after September 11th, all aircraft stayed on the ground. Even military aircraft had to receive special clearance to fly. In a ripple effect, the entire economy of the United States and the world was put on hold. The New York Stock Exchange shut its doors because of the attacks on the towers of the World Trade Center.
September 11th was the worst day for airline companies around the world. There was close to a 20% drop off in airline traffic in the fourth quarter of 2001. The U.S. commercial airline industry was in turmoil and
4. Several major airlines filed for bankruptcy. Many airlines significantly decreased their capacity, reduced their routes and postponed purchases of new aircraft. Some airlines reported a 50% reduction in routes and flight frequency. All these events provided opportunities for the low-cost carriers not only to increase the number of flights but also to introduce services on new routes.