Chaos In The Skies – The Airline Industry Pre And Post 9/11

1252 words - 5 pages

Chaos in the skies - the airline industry pre and post 9/11
Case Study
Chaos in the skies- the airline industry pre and post 9/11
1. Introduction
The terrorist attack on the New York World Trade Center and the Pentagon
on September 11, 2001, when civilian planes were turned into guided missiles
flown by suicide bombers driven by religious fundamentalism and hatred for
the United States not only seared themselves into the consciousness of the
American people, but into the economic and business fabric of the country,
and as a result, of the world.
While the United States economy was slowing in the months before this tragic
event, the aftermath of the bombings led the economy into a depression.
The airline and travel industry were the worst hit of all industries. This is a
review of the situation before and after 9/11 on industry of these attacks and
an overview of responses both by government and on industry to the event.
2. Situation before 9/11 STEP
2.1 Social Factors
increasing world trade and investment liberalization of markets. Between 1990
and 2000 airlines benefited from an increasing number of tourist passengers
from 450 million up to 700 million. The main reasons for people to fly were
leisure and business trips. Travelling by plane was also a symbol of wealth
and success.

2.2 Technological Factors
There has been made huge steps in airline technology, with the invention of
more efficient engines the demand for long-distance flight could be satisfied.
The internet opened a whole new and cheaper distribution channel for
airlines. Furthermore airlines could improve their non-core services to get
competitive advantages towards other airlines for example TV screens in the
seats or faster boarding with new boarding systems.
2.3 Economical Factors
There was an increasing of US passengers travelling with planes of 160%
between 1978 and 2000 (almost 660 million passengers) Through the year
2000 the operating costs for airlines went up constantly caused by higher fuel
prices and rising labour costs furthermore the widening of the non-core
services of airlines caused immense costs. Airlines reacted on that with
reducing labour and cutting costs. Furthermore many airlines started out-
sourcing their non-core services and activities in order to get back to the core-
service and to save costs.
2.3.1 Competitive situation
A basic impact on the competitive situation in the airline industry was 1978 US
open markets policy which enabled competitors to enter the industry. In the
further development of the industry several airlines merged in order to benefit
from economies of scale. In 1984, 15 airlines had 90% of the US market in
1990 there were 8 airlines with a market share of 90%. The increasing
competition among the airlines lowered the flight prices and airlines had to
reduce costs. By the introduction of Hub and Spoke systems fix costs for
airlines could be reduced and efficiency could be increased, also customers
benefited from these networks. The...

Find Another Essay On Chaos in the skies – the airline industry pre- and post-9/11

Comparison/Contrast Essay Pre and Post 9-11         How drastically has our

979 words - 4 pages frightening is afoot. It almost seems sacrilegious to say but, maybe the world post 9-11 is not so different from the one we lived in pre 9-11.In the past year anything and everything was found to have a link to the September 11 attacks, no matter how tenuous. When Major League Baseball threatened a work stoppage, it was no surprise. For decades ownership and the players have had countless disagreements and numerous stoppages and strikes. However, this

Shades of Gray: The Importance of Seeing the Other Side in a Post 9-11 World of Black and White

10175 words - 41 pages Shades of Grey: The importance of Seeing the Other Side in a Post 9-11 World of Black and WhiteOn September 11, 2001 at 8:45am American Airlines, flight number 11 out of Boston MA, carrying 81 passengers and 11 crew members crashed into the north tower of the World Trade Center and exploded into flames. At 9:03am, United Airlines, flight 175, also out of Boston, carrying 56 passengers and 9 crew members crashed into the south tower. Soon after

Airline Security Since 9-11

1300 words - 5 pages On September 11, 2001, New York City faced its worse day in history, when the ?Twin Towers? collapsed; due to terrorist attacks. On this day four airplanes were strategically hijacked, by groups of Middle Eastern Muslims, and two of the four, suicidally, dove into each of the two World Trade Centers, 1 & 2. This tragedy sent airline security ?through the roof?. There were, and still are, guards everywhere and people were, at first, terrified

The Significance of Technical Escort Units in a Post 9-11 WMD Domain

1563 words - 7 pages In a Post 9-11 WMD Environment The world is changing, becoming smaller and more dangerous it seems, and the events of September 11th, 2001, brought a distinct reality crashing down around us. The reality was that we could be hit on the home front, after all. The enemy determined to do so harbors zero concern for the “rules of war” and will stop at nothing to inflict the greatest amount of carnage and casualties possible. As the government and

Self-Defense Post 9-11

3417 words - 14 pages necessary to explore the reasons for this change as well as its future implications for the international community in general. In this essay I will examine the criteria for the State’s right to self-defense as it applies to state weakness, irregular warfare and international law in our post 9-11 world. Furthermore, while such change may appear to be linear and expected, Naomi Klein offers a different narrative aimed at exposing the hidden agenda

Sikh Issues in a Post 9/11 World

1414 words - 6 pages Sikh Issues in a Post 9/11 World The Muslim Sikh community in the United States have been facing violence and discrimination against their people increasingly since 9/11. FBI: Dramatic Spike in Hate Crimes Targeting Muslims. (2012) . Retrieved from According to the FBI, Anti-Muslim has soared by 50% in 2010 since

Preserving Civil Liberties In A Post-9/11 America.

3457 words - 14 pages the ACLU, is appalled. "I think our forefathers would roll over in their graves. I don't care if it's never used, granting government that kind of power is a problem" (qtd. in Penn 1).The Patriot Act plays upon the fears of a post-9/11 America in order to justify thetrampling of the Bill of Rights and the rights it guarantees. Congress needs to go back to the drawing boards and find a better solution to preventing terrorism. As Americans

Racial Descrimination: Being Muslim in a Post 9/11 America

1076 words - 4 pages have names like Mohammed and Ahmed. They are wrongfully detained because they are Muslims. They are legal immigrants that have been granted the opportunity to live in this nation which allows everyone individual rights and freedoms. Then the government takes it all away.This racism towards Muslims in America only began after 9/11. The American people need to understand the history and what the Islamic religion is all about before they can judge

Transportation Security Administration:Prior to and Post 9/11

884 words - 4 pages security was minimal. The most an individual had to do was remove the coin change in their pockets or maybe even taking off belts that had particularly large buckles and walking through a metal detector. Not today. Now there are full body scanners at some airports. Twelve years ago, non-ticketed visitors could escort their loved ones departing to airline gates. No today. Security prior 9/11 was what I would say is lackadaisical. There was a point

Rhetorical Analysis of President’s Address To The Nation Post 9/11

1650 words - 7 pages Rhetorical analysis assignment: President’s Address to the Nation Since the 9/11 attacks, the Bush administration has been calling every citizens and every nations to support his Middle East policy. Nonetheless, the U.S. has been involved in the middle-east struggle for more than half of the century, wars were waged and citizens were killed. Yet, political struggles and ideological conflicts are now worse than they were under Clinton’s

Life post-9/11: Children Without Parents

1117 words - 4 pages 9/11 we remembered those who were lost and remember the past, as it was the day our nation came together in unison with a sense of patriotism to defend the land of the free and the home of the brave. This is a story we all know how to tell; there is no happy ending, there are some without hope, there are tears of grief, but this story is filled with faith. A vast number of individuals were affected by September 11th, the youngest victim

Similar Essays

The Airline Industry After 9/11 Essay

2113 words - 8 pages 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

Case Study Of An Airline In The Post 9 11 Era, And A Marketing Analysis Of How The Airline Can Gain Marketshare

1137 words - 5 pages Background: The 9-11 tragedy has left its residual effects on the Americanbusiness environment in much the same was as untimely encounter with a skunk leaves its scent behind long after the encounter ends. While the American consumer's confidence in the airline industry is steadily climbing on the polls, the reality is that given the option, many travelers are selecting methods of transportation other than air travel. The result is that the

Description Of Supply And Demand Within The Us As It Relates To The Travel Industry And Auto Rental Industry Post 9/11.

867 words - 3 pages In the past year the auto rental industry has seen many changes. Fewer customers, increased insurance costs, an overabundance of available rental vehicles and a drastic reduction in vehicle value are just a few. Auto rental companies have tried to modify the way they do business in response to these changes. Nationally, rental companies have reduced rates, fleet sizes and number of employees in an attempt to find equilibrium within the market

Comparison/Contrast Essay Pre And Post 9 11         How Drastically Has Our

938 words - 4 pages something even more frightening is afoot. It almost seems sacrilegious to say but, maybe the world post 9-11 is not so different from the one we lived in pre 9-11.         In the past year anything and everything was found to have a link to the September 11 attacks, no matter how tenuous. When Major League Baseball threatened a work stoppage, it was no surprise. For decades ownership and the players have had countless disagreements