the airline industry post 9/11

the airline industry post 9/11

The Airline Industry Post-9/11: Coming Through “On a Wing and a Prayer”
Whenever there is major tragedy in the world, whole countries and economies are shaken.   Often, certain sectors, usually those closely related to the tragedy, suffer dramatically.   On September 11, the world shook as terrorists used airplanes in attacks of unprecedented violence and brutality, striking a deep blow in the welfare of both the economy as well as ordinary citizens around the globe.   The industry that was most deeply distressed by 9/11 was the airline industry.   9/11 has marked a turning point in the airline industry.   It has both affected the industry in the short and long run.   Post-9/11 the airline industry has undergone severe recession and has evolved into a new model which has entirely changed the way it operates as well as how passengers travel. (United States Congressional Research Service)
Immediately following 9/11, a large number of travelers cancelled their flights while others who planned to travel chose to postpone or altogether call off their plans.   This behavior was largely due to a strong lack of confidence in the overall security of both airplanes and the major cities that were often the primary destinations of travelers. According to a survey conducted by Gallup in February 2002, fifty-five percent of the general public feared air travel and only twenty-six percent of interviewed travelers felt very comfortable traveling. (Allsop)
Furthermore, the general economic recession resulting from the 9/11 attacks significantly reduced business travel and thus, business travelers, a vital resource for airlines.   This major drop in demand for flying struck a deep blow on an airline industry that relies on full planes in order to make profits. (Belobaba)  
In order to minimize already incurred losses as well as attenuate future losses, only flights with a sufficient number of passengers to be profitable flew. Companies found themselves with entire fleets grounded,...