The Airline Industry After 9/11

2026 Words5 Pages
bulb-icon

Recommended: How 9/11 affected aviation

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. The airline industry is classified into four categories by the Department of Transportation. The four categories are International, National, Regional and Cargo. The following are issues that affect the airline industry to some extent: airport capacity, routes, technology, aircraft purchase or lease costs, weather, fuel costs and labor. An estimate of up to 40% of an airline’s expenses is related to paying their employees. The airline industry not only transports passengers across the country and world but it also moves cargo from location to location. The largest segment for the airlines is general commercial passengers and business travelers. In 2004, there were 15 major airlines with 12 of those being mainly passenger carriers, the remaining three being cargo carriers. In addition to the large airlines (Delta, United, American, Southwest, Northwest), there are numerous low-cost regional carriers that have tapped into the larger carriers’ customer base. These smaller companies generally fly from smaller airports and serve a smaller amount of destination cities. Calling them a no-frills air carrier would not be far from the truth. Their goal is to move customers f... ... middle of paper ... ...ieved January 17, 2008 from http://www-econ.stanford.edu/academics/Honors_Theses/Theses_2002/Rosen.pdf Smith, M. and Pearce, B. (2005). IATA Economics Briefing No 2. Aviation Taxes and Charges. Retrieved January 10, 2008 from http://www.iata.org/NR/rdonlyres/8BC719FF-D354-4F61-8997-11173687DAED/0/aviation_taxes_charges.pdf Snow, K., Bash, D., and Barrett, T. (2001, September). Congress approves $15 billion airline bailout. Retrieved February 8, 2008 from http://www.cnnstudentnews.cnn.com/2001/fyi/news/09/24/airline.bailout/ Spitaliere, Diane. (2007, February 14). The Next Generation Air Transportation System Financing Reform Act of 2007. Retrieved February 22, 2008 from http://www.faa.gov/news/fact_sheets/news_story.cfm?newsid=8144 Wikipedia. (2007). Available Seat Miles. Retrieved March 1, 2008 from http://en.wikipedia.org/wiki/Available_seat_miles

Show More
Related

  • Essay On 9/11 Conspiracy Theory

    638 Words  | 2 Pages

    For starters a few days before the attack on 9/11, the airlines stocks did go up. Which means the supply and demand was greater. America was making more money, which is good. The airlines that stocks markets went up, were the airlines that were hijacked which than lead to them going bankrupt. Gabi Logan was saying on USA today “ Despite this government-funded measure, several prominent American airlines declared bankruptcy not long after the 9/11 attacks.” Due to bankruptcy more than just money was

    Read More

  • Airline Terrorism Before 9/11 and Today

    2412 Words  | 5 Pages

    This paper describes our nation and the worlds mindset about airline terrorism before 9/11 and airline terrorism today. This remains a very real and deadly subject even though we don’t have as many incidents occurring at this moment in time. Still the potential for countless lives being lost in an aircraft accident from the actions of a terrorist or terrorist organization is still very real and innocent families across this nation and abroad remain the targets. Additionally, it will show that the security measures in place at airports prior to 9/11 were far less adequate, than today, and personnel responsible for airport security at the gates and throughout were either poorly trained or not trained at all when it came to hijackers and terrorist. This paper will also identify the extensive security measures, rules and training that have been put into place, which helped to curtail acts of terrorism onboard airliners.

    Read More

  • Swot Analysis Of Air Canada

    947 Words  | 2 Pages

    43.1% of sales in Scheduled Air Transportation are Scheduled international passengers, which is the largest portion of the whole industry, and 26.6% of it are Scheduled domestic passengers. Since Air Canada is the largest airline of Canada that provide services for both international passengers and domestic passengers. The majority of its revenue comes from international passengers on long-haul flight. The industry’s international passenger segment has been growing at a rapid pace in the past years. Being one of the major carriers, Air Canada gets the most volume, and 42.6% market share in the whole industry. The Scheduled Air Transportation industry is expected to continue growing for the next few years. The major market segmentations in the industry are consumers and business travelers. Consumers who travel for a vacation, to visit family members are estimated to be 76% of total industry revenue. For business travelers, they account for about 17% of industry revenue since they often choose to pay for first class or premium economy for their seats. However, the competition in the Scheduled Air

    Read More

  • Delta Case Analysis

    1945 Words  | 4 Pages

    After September 11th, 2001, the airline industry experienced a significant drop in travel. The reasons for the airline industry downfalls also included a weak U.S and global economy, a tremendous increase in fuel costs, fears of terrorist's attacks, and a decrease in both business and vacation travel.

    Read More

  • Southwest Airlines: A Case Analysis

    1537 Words  | 4 Pages

    Even though Southwest offers no-frills, there is still a high degree of customer satisfaction that continuously builds customer loyalty for the company. As mentioned, Southwest offers low prices on their airplane tickets. Also, Southwest is renowned in the airline industry for its short turnaround time on arrivals and departures. And since people's biggest concern nowadays is money and time, having low price airline tickets to cater their traveling needs in a shorter period of time will surely satisfy them. Moreover, aside from the low prices offered, what attracts to customers is Southwest’s way in dealing with them. The employees of the airline treat their customers well and really listen to their needs.

    Read More

  • September 11: The Crash Of 9/11 In New York City

    1396 Words  | 3 Pages

    On September11, 2001 at 8:46 am an American Airline Plane carrying 96 passengers crashed into the side of the north Twin Tower in New York City. Several minutes later another plane crashed into the second Twin Tower. It didn’t take long after the second plane struck for the second tower to fully collapse. At 10:28 am the first tower followed suite and collapsed leaving many people including fire fighters and police officers trapped in the debris from the falling towers. The debris from the falling towers also caused the surrounding building to catch a fire, including World Trade 7 which at 5:20 pm collapsed luckily they were able to evacuate the building. Over 3,000 people were killed that day in New York City and in Washington, D.C. The days after 9/11 brought a significant amount of change to our country.

    Read More

  • Airport Security After September 11

    1464 Words  | 3 Pages

    Thousands of people lost their lives. Security totally failed, not at one airport, at three different airports around the country.” Due to the terrorist attacks on 9/11, the United States government decided airport security needed to be updated and become more stringent. These updates included a formation of TSA and Sky Marshalls, tighter security measures, and policy changes.

    Read More

  • Case Study: Qantas

    1629 Words  | 4 Pages

    According to the International Air Transport Association, 2001 was only the second year in the history of civil aviation in which international traffic declined. Overall, it is believed that the IATA membership of airlines collectively lost more than US$12 billion during this time (Dixon, 2002).

    Read More

  • IT Governance in Airline Industry Case Study

    1556 Words  | 4 Pages

    Airline and travel industry profitability has been strapped by a series of events starting with a recession in business travel after the dotcom bust, followed by 9/11, the SARS epidemic, the Iraq wars, rising aviation turbine fuel prices, and the challenge from low-cost carriers. (Narayan Pandit, 2005) The fallout from rising fuel prices has been so extreme that any efficiency gains that airlines attempted to make could not make up for structural problems where labor costs remained high and low cost competition had continued to drive down yields or average fares at leading hub airports. In the last decade, US airlines alone had a yearly average of net losses of $9.1 billion (Coombs, 2011).

    Read More

  • American Airlines Case Study

    1173 Words  | 3 Pages

    In 2011, American Airlines announced that they would be filing for Chapter 11 bankruptcy. This chapter was originally designed to accommodate complicated reorganization of publicly help corporations. It allows companies with a court approval reject agreements that were made under collective bargaining and renegotiate contracts with creditors. On April 15, AMR Corporation, which is the parent company of American Airlines, Inc. and a subsidiary to providing aviation services approved a plan of reorganization plan to exit bankruptcy protection based on the merge with US Airways (American Airlines , 2008). There was also the drop in the air travel due to the September 11th terror attacks. American Airlines were created by a combination of 80 smaller carriers in 1930. In 2008, AA was considered the world’s biggest airlines until compet...

    Read More

  • Swot Analysis Of Indigo Airlines

    1086 Words  | 3 Pages

    Airlines industry is a highly competitive market with limited number of players. The data obtained to analyze are taken from research reports, papers and observations.

    Read More

  • Jet Blue Marketing Mix

    714 Words  | 2 Pages

    In a dysfunctional time for the airline industry, most airlines, especially major carriers, are adapting the concept of "doing less with more." One low-cost carrier, JetBlue, is changing the domestic aviation landscape in this regard and is defying the odds. Here is a company that has examined each marketing mix elements carefully, has adapted them to its customer’s needs, and is succeeding because of this approach.

    Read More

  • Market Segmentation Of Airline Industry

    718 Words  | 2 Pages

    There are different ways in which the Airlines industry is segmented. The first form of segmentation is the area served by the airlines. The "major" serve the entire country and even fly people internationally, the "national" airlines serve the country and provide services to most parts of the country, and the "regional" airlines provide services to single regions or among a limited numbers of cities. Other segments of the industry are the carriers that provide cargo services. Their target market is those customers that provide cargoes.

    Read More

  • Opportunities and Threats facing the U.S Airline Industry

    1607 Words  | 4 Pages

    In response to the industry’s financial crisis, Congress made available several forms of relief that amounted to over $20billion. This relief includes the payment of upto $5billion in pretax cash assistance to reimburse air careers for losses incurred as a direct result of the 4-day government shut-down of air traffic after 9/11. However, relief measures were not enough to bring the airline industry out of hot water.

    Read More

  • The Global Aviation Industry

    1338 Words  | 3 Pages

    The Economic Impact of Air Service Liberalization. Retrieved from http://www.boeing.com/boeing/commercial/liberalization/index.page

    Read More

More about The Airline Industry After 9/11

Open Document