The Air Transportation Stabilization Board

The United States carries over one third of the globe’s total traffic, where Over 1.5 billion passengers fly annually. Over the past 20 years, air travel has grown at an average of about 5% per year, the reason for annual change is usually differences in economic growth, and of course other environmental factors, such as the current war. As a rule, the annual growth in air travel has been about twice the annual growth in GDP. Deregulation, liberalization, and competition have essentially altered the management strategies and practices of airlines. Productivity improvements and cost management have been two of the greatest concerns for US airlines for the past twenty years. As a whole, the airline industry must continue to improve their specialization in terms of fleet utilization, pricing and revenue management, and schedule optimization.

The terrorist attacks of September 11th caused many changes in our country. Although there were many after effects of the September 11th attacks, the airline industry was most impaired. This paper will explain two factors related to the airline industry that were most affected, the American people and the economy.

Signed into law in 2002 by President George W. Bush, the Homeland Security Act established the Department of Homeland Security to prevent terrorist attacks, minimize any damage to the nation’s citizens, and reduce the country’s vulnerability to terrorism. In response to 9/11, the government, as well as the airline industry, has gone through many changes. As of result of 9/11, the airline industry lost a total of $7.7 billion. This paper reviews the reasons behind the making of the Homeland Security Act, the effects of 9/11 on the airline industry and the government, the purpose of the Homeland Security Act, and the aftermath of the Homeland Security Act.

Immediately following the attack the airlines had a 4-day forced shutdown, costing them about $1.4 billion. The amount of leisure and business travel, especially for short trips, both declined greatly due to the extreme security measures that were now being imposed. On top of the unnecessary hassle that people wanted to avoid with airline travel, fear also kept some travelers from flying, adding to the loss of revenue for airlines. About 165,000 jobs were lost in aviation when this downfall struck, causing over 30 carriers to file for bankruptcy. The only profitable airline during the months following the attack was Southwest, but it still was not operating at its full capacity. Although President Bush tried to provide that airlines with some financial relief, the industry was still at a historically low point well into 2002. The Air Transportation Safety and System Stabilization Act was signed on September 22, 2001 and allowed airlines to receive short-term assistance of close to $15

The situation of the U.S airlines has been affected by a number of factors through time and is not a secret that has been passed by moments difficult, especially in the economic part. One of these factors were the terrorist’s attacks of 911. No other event in history has changed the way of doing business that the fateful events of September 11, 2001. Apart from the significant human loss, the millionaire impact to the economy of New York and in the United States and multi-million dollar expenditure associated with the global war against terrorism, attacks on the World Trade Center (World Trade Center or WTC) in New York and the Pentagon trembled the authority of the United States, at a time when it was going through a recession. All this made

The attacks on 9/11 changed air travel for the foreseeable future, gone were the days you could park near the doors to the airport terminal and run to get to your flight. Now people fly with apprehension, wondering is there someone on this plane that want to kill me and what will I do if there is. The industry has made security a top priority as has the government to help alleviate those feeling. New government agencies were created, the most visible to the public being the TSA who handle security check points at airports, the FAA made changes to airport security to restrict access to the ramp areas to safeguard aircraft, in flight we now have many more Air Marshals to help combat threat once the plane leaves the ground. Aircraft now have reinforced

September 11, 2001, was a horrific event that rocked the world and the way people viewed the safety of airline travel. The airline industry was hit the hardest after that day and it was uncertain if they could regain their customer’s

America on September 11, 2001 required that we reform our nation’s aviation security system in fundamental ways. Three years after the Sept. 11 tragedies, how far has airport and airlines come? It depends on the source. While it is important for airports to heighten security after the attacks of 9/11, the policies of profiling passengers are inadequate and a necessitate revision.

Years after the incident, the deal toll is still inconclusive. Families of the ones lost, as well as the victims, until this day, do not have any peace. This tragedy was a wake-up call to us all, especially the airline industries all around the world, that is why so many security measures were taken followed the event. 15 years later, aviation safety still seems to remain as strict as it was when the attack first occurred. However, such terrible disaster made the people more acclimated to the security measures of the airlines for the safety of everyone in the country. We all now understand that these regulations had to deploy and that having long lines, or longer security check is a beneficial factor in the

Many airline companies went into bankruptcy due to the lack of sales in airline ticketing. "With all these measures we are returning America's airlines back to the American people," Bush said during a speech in which the sound arriving and departing airplanes could be heard in the background (cnn.com). President Bush was involved completely in restoring trust in the American citizens on air transportation. September 11 attacks brought a different light to the American people on transportation.

The 9/11terrorist attacks seriously affected air travel and led to the demise of many airlines. Scores of airline industry workers still need to regain what they lost in both wages and benefits, and are hopeful of an industry turnaround this year (USA Today, 2009).

Nearly 3000 people were killed during the terrorist attacks on 11 September 2001 and the coming months the media were filled with interviews, profiles and terrible stories of loss. Fear of more terrorist attacks spread the nation. As a reaction, the American population massively abandoned airports and chose to travel by car instead, which had a great impact on the airline business. But what no one mentioned –nor the media or politicians- is that air travel is dramatically safer than driving. The safety gap is so large, that planes would still be safer than cars even if the threat of terrorism were unimaginably worse than it actually is. According to research, 1595 people lost their lives because of the major shift from air travel to a much less safe way of traveling: by car. That is six times as many as the people who where on board of the doomed flights on September 11.

Firstly, one of the effects is airport and aircraft security, which has changed very significantly by September 11. Prior to this event security had been controlled by each airport, which entrust to personal security companies. However, according to Transportation Security Administration (n.d.), the TSA (Transportation Security Administration) was created to tighten of the security of the nation’s transportation system in 2001 after September 11. Before September 11 happens airport security was very simple. For example, the security did not scan all of passenger’s baggage and passengers could bring sharp things to the airplane such as sharp scissors and kitchen knives for cutting food. However, now all baggage must be a x-rayed and passengers required to walk through metal detectors.

Aviation Security has evolved over the past 40 to 50 years showing the constant change in terrorist acts in which the security of all passengers, crew, and aircrafts are at risk. The United States Government must, now, stay up to date with the newest technology for screening passengers and their belongings. The technology was not available 50 years ago, making it much more difficult for countries to maintain safer environments in their airports. Hijackings in the United States was a major shift in terrorism in the country during the Cold War. The 1960s was the beginning of in-flight bombings as well. The 1980s showed a drastic increase in security from the FAA, but didn’t increase safety concerns after the bombing of Pan American Flight 103. In the 1990s, security increased but it was still hard for the United States to maintain security. With ever-changing terrorist threats occurring every year, especially with the possible cover-up of TWA Flight 800 and the intelligence used regarding the Bojinka Plot not properly disbursed to the appropriate departments. September 11, 2001 was the hardest era in United States history. The United States began it’s shift from being passive to aggressive. Technology is changing every day, so new security measures are being put in place at all important infrastructures. Although this change is important, there are still multiple challenges facing this country every minute. So, from the initiation of the Federal Aviation Administration’s Peace

On the other hand governments support aviation industry by building airports, roads and hotels near airports, because they recognize this industry as an important ingredient for economic well-being. In addition governments arrange security at the airports to ensure safe journey. The terrorist attacks of September 11, 2001 have had negative implications for the industry. Over the years, all the airlines have changed their routes, marketing tactics and prices; they are also making an effort to reduce the fear and negative image associated with air-planes. Governments have imposed strict security checks on air travel passengers in order to avoid any unforeseen terrorist activity.