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.
Directly after the terrorist attacks, the government closed airports, canceling thousands of flights at a direct cost to airlines. Passenger travel fell drastically due to our air space being closed temporarily, but the main reason was the loss of consumer confidence. Airlines experienced roughly a 30% reduction in consumer demand immediately following the attacks.
The Air Transportation Stabilization Board was created in the weeks following the attacks. The board was authorized to give faltering airlines up to $10 billion in government backed loans. Despite this government funded measure, several prominent airlines declared bankruptcy. At the same time that the industry was facing this large-scale drop in the number of passengers, low-cost carriers grew significantly and air fares decreased. As a result of the massive financial losses due to lack of passenger demand, canceled flights and increased expenditures for
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.
Immediately following the attack the airlines had a 4-day forced shutdown, costing them about $1.4 billion. The amount of leisure and business travel, especially for short trips, both declined greatly due to the extreme security measures that were now being imposed. On top of the unnecessary hassle that people wanted to avoid with airline travel, fear also kept some travelers from flying, adding to the loss of revenue for airlines. About 165,000 jobs were lost in aviation when this downfall struck, causing over 30 carriers to file for bankruptcy. The only profitable airline during the months following the attack was Southwest, but it still was not operating at its full capacity. Although President Bush tried to provide that airlines with some financial relief, the industry was still at a historically low point well into 2002. The Air Transportation Safety and System Stabilization Act was signed on September 22, 2001 and allowed airlines to receive short-term assistance of close to $15
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
America on September 11, 2001 required that we reform our nation’s aviation security system in fundamental ways. Three years after the Sept. 11 tragedies, how far has airport and airlines come? It depends on the source. While it is important for airports to heighten security after the attacks of 9/11, the policies of profiling passengers are inadequate and a necessitate revision.
The attacks on 9/11 changed air travel for the foreseeable future, gone were the days you could park near the doors to the airport terminal and run to get to your flight. Now people fly with apprehension, wondering is there someone on this plane that want to kill me and what will I do if there is. The industry has made security a top priority as has the government to help alleviate those feeling. New government agencies were created, the most visible to the public being the TSA who handle security check points at airports, the FAA made changes to airport security to restrict access to the ramp areas to safeguard aircraft, in flight we now have many more Air Marshals to help combat threat once the plane leaves the ground. Aircraft now have reinforced
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
Years after the incident, the deal toll is still inconclusive. Families of the ones lost, as well as the victims, until this day, do not have any peace. This tragedy was a wake-up call to us all, especially the airline industries all around the world, that is why so many security measures were taken followed the event. 15 years later, aviation safety still seems to remain as strict as it was when the attack first occurred. However, such terrible disaster made the people more acclimated to the security measures of the airlines for the safety of everyone in the country. We all now understand that these regulations had to deploy and that having long lines, or longer security check is a beneficial factor in the
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.
Many airline companies went into bankruptcy due to the lack of sales in airline ticketing. "With all these measures we are returning America's airlines back to the American people," Bush said during a speech in which the sound arriving and departing airplanes could be heard in the background (cnn.com). President Bush was involved completely in restoring trust in the American citizens on air transportation. September 11 attacks brought a different light to the American people on transportation.
A drop in fares has been the best result of the Airline Deregulation Act of 1978. It has been the impetus for the increase in the number of flights, which in turn has spurred a drive for greater safety in airlines. But with the current airline market, this development has given us one negative. Since ticket prices have dropped to new lows, the realities of an industry which operates on such economies of scale dictates that only a few competitors have the capacity to operate within the market. This is not the desired effect of either political side on this issue, but it is an economic necessity with the environment that has been created, very similar to that of public utilities and phone companies.
Nearly 3000 people were killed during the terrorist attacks on 11 September 2001 and the coming months the media were filled with interviews, profiles and terrible stories of loss. Fear of more terrorist attacks spread the nation. As a reaction, the American population massively abandoned airports and chose to travel by car instead, which had a great impact on the airline business. But what no one mentioned –nor the media or politicians- is that air travel is dramatically safer than driving. The safety gap is so large, that planes would still be safer than cars even if the threat of terrorism were unimaginably worse than it actually is. According to research, 1595 people lost their lives because of the major shift from air travel to a much less safe way of traveling: by car. That is six times as many as the people who where on board of the doomed flights on September 11.
Firstly, one of the effects is airport and aircraft security, which has changed very significantly by September 11. Prior to this event security had been controlled by each airport, which entrust to personal security companies. However, according to Transportation Security Administration (n.d.), the TSA (Transportation Security Administration) was created to tighten of the security of the nation’s transportation system in 2001 after September 11. Before September 11 happens airport security was very simple. For example, the security did not scan all of passenger’s baggage and passengers could bring sharp things to the airplane such as sharp scissors and kitchen knives for cutting food. However, now all baggage must be a x-rayed and passengers required to walk through metal detectors.
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.
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.