World Events and the Airline Industry

Paper Summary:

This paper examines how September 11 and other world events have impacted the airline industry, as well as why they were affected. It also discusses what measures they have taken to combat these effects and remain solvent and successful all the while.

Safety Fears
Measures Taken to Improve Airline Solvency
Historical Perspectives and Financials
Post 9-11 Travel
Governmental Bailouts
Effect of Iraqi Invasion on Airline Industry and Travel
Terrorism Fears
Airline Schedule Changes Related to Iraqi Invasion
Management Intervention to Stave off Bankruptcy
Management Cutbacks
Labor Concessions
SARS Outbreak and the Public Health Response
Geographical Implications
Intervention of World Health Organizations
Airline Response to Ongoing Concerns
Continuing Labor and Financial Concessions
Marrying up of Major Carriers with Low-Cost No Frills Airlines
Future Trends and Financial Outlook

From the Paper:

"Historically the airline industry has been resilient to trends. But the investment made in the September 11th attacks was relatively small. It is estimated that the hijackers spent about $50,000 total for their accommodations, rental cars and airline tickets. But in the week which followed the attacks, the financial injury to the American economy became clear -$60 billion in direct costs to the US economy and well over $600 billion in stock market losses (Dallas Business Journal, 2003) . Perhaps the hardest hit was the airline companies. Questions were raised about airline security, and the airlines stood in significant danger of being named in thousands of law suits from families who lost loved ones in the attacks."

More papers on World Events and the Airline Industry:

• Essay # 4403 : "Technological Disasters - The De-Havilland Comet"
• Persuasive Essay # 93720 : "Economics of Commercial Aviation"
• Essay # 88961 : "Air Canada"

APA Citation:

MLA Citation: