Drafting Body For Insurance Clauses, The And Terrorism Risks

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

The terrorist attacks on September 11, 2001 shook the United States in a profound way, deeply upsetting the national perception of safety within U.S. borders. No industry or sector of the economy felt the impacts of these events more than the airline industry. Both the immediate reaction to the attacks and the long-term repercussions have negatively affected the industry. Today’s airline industry is much different than it was prior to September 11. There is a much smaller work force, more low-cost carriers, more security and more fees associated with flying.

Signed into law in 2002 by President George W. Bush, the Homeland Security Act established the Department of Homeland Security to prevent terrorist attacks, minimize any damage to the nation’s citizens, and reduce the country’s vulnerability to terrorism. In response to 9/11, the government, as well as the airline industry, has gone through many changes. As of result of 9/11, the airline industry lost a total of $7.7 billion. This paper reviews the reasons behind the making of the Homeland Security Act, the effects of 9/11 on the airline industry and the government, the purpose of the Homeland Security Act, and the aftermath of the Homeland Security Act.

The situation of the U.S airlines has been affected by a number of factors through time and is not a secret that has been passed by moments difficult, especially in the economic part. One of these factors were the terrorist’s attacks of 911. No other event in history has changed the way of doing business that the fateful events of September 11, 2001. Apart from the significant human loss, the millionaire impact to the economy of New York and in the United States and multi-million dollar expenditure associated with the global war against terrorism, attacks on the World Trade Center (World Trade Center or WTC) in New York and the Pentagon trembled the authority of the United States, at a time when it was going through a recession. All this made

Accident investigation and analysis will be assessed in the project as it relates to safety in order to highlight the strategies applied by the airlines in determining the causes of incidents and preventing them in the future.

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

American airline industry is steadily growing at an extremely strong rate. This growth comes with a number economic and social advantage. This contributes a great deal to the international inventory. The US airline industry is a major economic aspect in both the outcome on other related industries like tourism and manufacturing of aircraft and its own terms of operation. The airline industry is receiving massive media attention unlike other industries through participating and making of government policies. As Hoffman and Bateson (2011) show the major competitors include Southwest Airlines, Delta Airline, and United Airline.

1. There are a few trends in the US airline industry. One is consolidation, wherein existing players merge in an attempt to lower their costs and generate operating synergies. The most recent major merger was the United Continental merger, which is still an ongoing affair, but has created the largest airline in the United States by market share (Martin, 2012). Another trend is towards low-cost carriers. In the US, Southwest has been a long-running success and JetBlue a strong new competitor, but in other countries this business model has proven exceptionally successful. The third major trend is the upward trend in jet fuel prices, and the increasing importance that this puts on hedging fuel prices and capacity management (Hinton, 2011).

Typically, the airline industry has high regulatory policies which apply to all routes that the airline takes. These regulations have been put in place to promote security and safety of both the passengers and the communities in all the international destinations. As a result, British Airways and the other international flight companies have formed policies with governments in different countries to eliminate threats such as terrorism, war and natural disasters which can have a negative impact on the industry. The political climates are imperative to the safety of the passengers when they are using the British Airways flights to travel to their destinations. Therefore,

Airplane security should be enhanced because, the more thorough it is, the safer the passengers and pilots are. The passengers and pilots’ lives rely on their security. They put their lives in the in the hands of those who assure that security. One “slip up” in a security check could lead to hundreds of people losing their life. Men, women, children, moms, and dads are all losing their life due to one small mistake. These mistakes could easily be avoided by enhancing the security. Smuggling people, alcohol, and weapons have become a problem. Finding the securities weaknesses and loopholes could stop these problems.

The supplier power in airlines is dominated by the world’s two largest aircraft manufacturers are Airbus and Boeing. The competition between the two manufacturers is neck to neck but that would prove to be a boon for Emirates as the prices would not rocket through the ceiling. A study shows that Emirates holds 93 Boeing aircrafts and 83 Airbus units (Planespotters, 2009). In 2007, Emirates purchased 81 Airbus flights, to extend it services- however, they chose Airbus over Boeing as the latter failed to deliver its latest aircrafts on time and moreover, Airbus had quoted a good price (Barryl, 2007). The changing oil prices also have an adverse effect on the aviation industry. In a nutshell, the bargaining power of suppliers is high.

Risk management is a much broader process in aviation industry. It includes basically solutions to the various risk factors. They are as follows:

China has a rapidly growing aviation sector from 2600 aircraft to 4500 in the next five years (GTIN, 2011)

The growth of airline industry in any country is directly proportional to its GDP growth; the greater the business activity, the more air travel and the higher the GDP of the country. The demand

Airline industry is a growing and a challenging industry across the globe and it is becoming more competitive on quality, pricing and most prominently safety in the contemporary world.