Chaos in the Skies- the Airline Industry Pre and Post 9/11
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
The demand for air transport was basically caused by a rising world GDP, an 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
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
The demand for air transport was basically caused by a rising world GDP, an 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