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How September 11, 2001 has Affected the Airline - Essay Example

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How September 11, 2001 has Affected the Airline

This series of events was perhaps one of the most unforgettable in all of the United States' history, and certainly one of the most devastating. In order to come to a clearer and more knowledgeable viewpoint on this subject matter, the following questions must be addressed:
By thoroughly discussing these questions, as well as relevant and concise related topics, we can come to a more understanding and intellectual viewpoint on this subject of interest. The aim of this paper is to discuss all of these elements, while especially making it understood how the airline economy has been affected by this event; from people being scared to fly, to airlines cutting routes, to the leading of some airlines actually going out of business. This is what will be dissertated in the following.
The hijackers who carried out the terrorist attacks of September 11th were connected to al-Qaeda, which is an Islamic terrorist group led by Osama bin Laden. Initially, Bin Laden had denied responsibility for the attacks, but eventually he claimed direct responsibility for orchestrating the attacks. (CBC News, 2004). ...
As an end result, there were 2,986 fatalities.
How has September 11th Affected the Airline Economy
The terrorist attacks of September 11th resulted in short-term and long-term disruption of economic activity in many ways. This disruption was especially severe in regards to the United States' airlines. The United States' airline industry was already in a weak financial position before the attacks and were "with rising debt ratios and falling returns on investment." (Looney, 2002: 1(6)). Even to the present day airline passenger traffic has apparently remained below normal, "100,000 layoffs have been announced and employment in October and November fell by 81,000 (almost 8 percent)." (Looney, 2002: 1(6)). In the most simplistic terms, the United States' airline sector has lost around 20 percent of its overall relative value since September 11th. The attacks had a significant economic impact on the United States and world markets. Many of the major local airline carriers have permanently cancelled certain destinations, and reduced the number of flights operated. Even hotels in locales such as Egypt, Jordan, Tunisia, Morocco and Dubai reported a significant drop in occupancy rates.
Tourism in New York City plummeted after the attacks of 9/11, causing massive losses in a sector which employed 280,000 people and generated $25 billion per year. "In the week following the attack, hotel occupancy fell below 40 percent, and 3,000 employees were laid off." ("Wikipedia", 2006). The New York City projected budget deficit for the 2003 fiscal year which begins July 2002 ballooned from $2-$2.5 billion to approximately $4 billion, "though most direct expenses related to the rescue and recovery effort are to be covered by the ...Show more


The September 11th terrorist attack on the United States, which took place in the year 2001, has left everlasting and devastating effects on the entire world. Remembered as 'the day the world changed', also referred to as 9/11, were a series of coordinated terrorist attacks upon the United States of America which were carried out on the morning of Tuesday, September 11, 2001…
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How September 11, 2001 has Affected the Airline essay example
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