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September 11 impact on aviation industry
Airline industry changes after 9 11
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I. Summary The terrorist attacks of September 11th, 2001 have forever changed how commercial airlines operate. Even with today’s security measures in place, terrorism is once again on the rise. In the aviation community, the airlines are the ones left to feel the negative effects of these terroristic attacks. Logan (n.d.) explains that airlines had a 30 percent loss in demand with the initial shock of the attack of 9/11 (para. 2). II. Problem The problem is when there is a terrorist attack, the airlines lose revenue. Bryant (2016) explained the recent terrorist attacks in Brussels had caused easyjet, a low-cost carrier (LCC), to have a loss of revenue in a six-month period of $34.6 million (para. 3). III. Significance of the Problem The …show more content…
significance of the problem is if terrorist attacks cannot be stopped before they happen airlines could go bankrupt after every attack. Mclntyre (2015) explained that terrorist attacks that create long interruptions could push airlines to file Chapter 11 bankruptcy (para. 11). IV. Development of Alternative Actions Alternative Action 1. An alternative action is to change the security provider from the Transportation Security Administration (TSA) to a privatized company to help improve security. Korth (2012) explains that Sioux Falls was one of the first airports in the country to switch from using the TSA to a private security outlet (para. 4). Advantages. One advantage to this change in security is it would lower the amount of customer complaints making it a more welcoming environment for travelers. Korth (2012) quoted Dan Letellier saying “prior to the switch, the airport received a pretty regular supply of complaints of treatment and rude behavior…since then very seldom, if ever do we receive complaints about treatments by the screeners” (para. 10). Another advantage to this is it would bring much needed flexibility and experience to the security force. Korth (2012) explained that the privatized company brings a good balance between experience and flexibility that fits well with the airport (para. 13). Disadvantages. A disadvantage of this is both the TSA and privatized companies have the same standards for security. Korth (2012) quoted Lorie Danders saying “the security standards at federalized and privatized airports are identical” (para. 8). Another disadvantage is the airport does not control on who provides security. Korth (2012) explained that the TSA is the one who decides by taking bids from different privatized companies (para. 15). Alternative Action 2.
Another alternative action is to improve the detection devices at the airport security areas to catch terrorists before the gain further access to the airport. Eng (2014) explained that many companies are trying to create more advanced methods of detection (para. 6). Advantages. An advantage is the ability to scan a person for concealed weapons. Eng (2014) gives an example of a machine that is designed to scan passengers instead of baggage (para. 7). Another advantage to machines of this type is it will make it easier to detect items in baggage since conventional methods are not good enough. Eng (2014) quoted Leo Boivin saying “trying to find knives at airport check points is tough…the average carry-on [bag] has more stuff in it than ever before and it makes it harder to find” (para. 3). Disadvantages. A disadvantage is the cost of these new machines may be higher than airports are willing to pay. Eng (2014) explained that these new systems could cost hundreds, if not thousands, of dollars per machine (para. 13). Another disadvantage is these new machines could violate amendment rights. Eng (2014) states “some advanced detectors such as Trex’s archetype may bring up privacy and Fourth Amendment concerns” (para.
14). V. Recommendation My recommendation is to use either military or police working dogs at the airports. Baum (2016) that airport security personnel are too predictable whereas dogs are not (para. 8). An advantage of this is terrorist would not be able to tell how alert a dog is which could possibly deter them. Baum (2016) states “they don’t know how alert the dog is; there’s nothing that will tell them” (para. 9). A disadvantage of this would be security personnel would needed added training to be able to handle the dogs.
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
Qantas has undertaken significant changes over the last decade to cope with internal and external factors such as the terrorist attacks on September 11, 2001 which effectively reduced the demand for international travel. Qantas initially reduced its international travel flying capacity by 11%. Fortunately, the collapse of Ansett which halted domestic competition in the Australian aviation industry which had dropped the bidding price war for consumer finances, softened the blow on September 12, 2001.
The immediate financial repercussions of the terrorist attacks were astronomical. Makinen (2002) reports airlines received a $15 billion federal aid package. Additionally, insurance ...
Since 9/11 there have been nine major security changes at airports. The most important changes are the liquid ban, which bans liquids more than 3.4 ounces from being on an airplane and the body-scan machines along with the enhanced pat downs. (Seaney 1)l/ The body scan machines are x-ray machines that scan the person for anything that could be used as a weapon. Enhanced pat downs are violating to some people as they do not like their private areas searched for weapons. But these pat downs are necessary to detect, find, and remove weapons that a TSA (Transportation Security Administration) agent cannot see with their own eyes. The last important change worth mentioning is that all special items including laptops, tablets, E-readers, and all electronic items have to be checked for explosives and other threats. These changes as well as other minor regulations for passengers give the TSA an extra line of defense while screening air travelers.
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.
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).
September 11, 2001 marked the most horrific day in history for United States of America. The events of this day changed the lives of those residing in America forever. United States was considered somewhat safe, in regards to terrorists’ attacks. However, this all came to a screeching halt when 19 militants known to be a part of the Al-Qaeda terrorist group hijacked four planes for the purpose of destroying targeted areas in the United States. As a result of the deadly attack on the United States, security measures drastically changed. Although, security measures throughout the United States have been in place, extreme caution came into effect. All departments looked at different measures to improve preventing terrorists’ attacks. Department of Homeland Security, Aviation and US Customs and Immigration were some of the main areas that changed their security measures.
Buyer Power- WEAK Within the airline industry, there are a large number of buyers compared to the number of airlines. This is a low threat because there isn 't many options for customers
The importance of the TSA in security can be seen on a daily basis, even though this security comes at a price. Majority of the time the lines move smoothly and delays are caused by passengers who rush and fail to follow the rules. This week alone 37 Firearms were discovered, of the 37 firearms, 34 were loaded and 15 had rounds chambered. (Transportation Security Administration, 2014) These are dangers items that we don’t know the intent of the passengers. If you look back at the events of 9/11 lesser weapons (box cutters) were used by the hijackers to take over the plan, fear is a powerful tool. The TSA has used multiple detection systems which assist with detection of these items which include but not limited to body scanners, chemical scanners (which detection gun power ingredients), metal detectors ...
Airports are considered “hard targets” which mean attacks on these places could inflict major widespread damage. Without these new scanners terrorists will see these airports as vulnerable, so the scanners can scare away terrorists when they see how effective the scanners actually are. The text states, “Whereas metal detectors are only useful for locating guns, knives, and metallic weapons, full-body scanners look beneath the clothes, locating weapons and substances that are heavily concealed and not detectable by a metal detector” (Auerbach, 4). This shows that airports with new scanner will not be a target for terrorism and if all airports eventual get this new technology our nation will be securer than ever preventing all terrorist attacks in our country. After the full-body scanners are installed military and security can track down specific terrorist groups and keep them from attacking any popular airport which is a true quality of being a secure nation. All airports are in demand for the full-body scanners as it allows the people of the country to be safe and creates a better future for advanced
After the terrorist attack on September 2001, there are many changes that were executed in the airport security systems, and these changes ranged from thorough inspection of individual passengers as well as additional screening procedures, which the security personnel deemed appropriate. For example, following the 9/11, passengers were required to submit their bags for inspection prior to boarding the flight. The change in airport security has come at a great price as the passengers, security personnel, and the aviation industry as whole were affected. It has been over a decade since 2001, and that fateful event dictated the manner by which new
The installation of hard technological innovations requires substantial funding from the airport’s project management department. Achieving the expected standards of crime prevention in an airport is not an easy thing to do. However, new advances in technology show that the combination of both the hardware and software technological innovations may form a predictable, flexible, permanent, and reliable system of crime prevention in airports. There is a lot of research evidence that supports the effectiveness and efficiency of hardware technological innovations, such as improved airport lighting and CCTV surveillance, in crime prev...
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).
Did you know by late 2011, Europe had banned full-body scanners from its airports? Why has America not followed in Europe's lead? Many Americans have different opinions on the scanners being used. The advances in technology enable America to use full-body scanners to detect objects on a person's body for security screening purposes, without removing clothes or making physical contact. The United States have been using full-body scanners to update their airport security against attacks. Are body scanners worth the protection and making people feel better when it is a violation of rights and the money could be used in other places better.
Airlines industry all over the world is experiencing a major setback when it even comes to breakeven. Most of them are heading towards losses. Unprofitable airlines continue to fly as the shareholders cant let them close as they will incur great losses, thousands of people will be unemployed and there will be inconvenience for the travellers.