How September 11 Changed The Aviation Industry
By
Charles Cooks
Embry-Riddle Aeronautical University
Extended Campus
Nellis Resident Center
May 2005
Abstract
This paper assesses the impact of the September 11th terrorist attacks and its after-e®ects
on U.S. airline demand. Using monthly time-series data from 1986-2003, we ¯nd that September
11th resulted in both a negative transitory shock of over 30% and an ongoing negative demand
shock amounting to roughly 7.4% of pre-September 11th demand. This ongoing demand shock
has yet to dissipate (as of November 2003) and cannot be explained by economic, seasonal, or
other factors
Table of Contents
Table of Contents Page
TITLE PAGE 1
ABSTRACT 2
TABLE OF CONTENTS 3
INTRODUCTION 4
ALASKA AIRLINE FLIGHT 261 MISHAP 5
SUMMARY 7
CONCLUSION 8
REFERENCES 9
Introduction
No industry has sufered greater economic damage from the terrorist attacks of September 11, 2001 than the U.S. airline industry. In addition to directly causing a temporary but complete shut-down of the commercial aviation system, the attacks caused many travelers to reduce or avoid air travel, 3 Likewise, following September 11, many businesses put temporary freezes on travel for their employees.Iimmediately following September 11 stringent new security requirements were implemented and as a direct result of the terrorist attacks it made traveling by air more cumbersome and time-consuming . The attack also resulted in a negative shift in the demand for air travel.
Since September 11, 2001, numerous airlines have been experiencing crisis unlike any in modern aviation history. The lack of recovery in passenger demand has been one of the primary issue in the aviation industry. There is little doubt that September 11th and its after effect resulted in industry turmoil
Airline Security Regulations
Regulations reguarding safety of aviation really changed after September 11. Computer security...