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Q: The Impact of September 11 ( Answered 5 out of 5 stars,   1 Comment )
Question  
Subject: The Impact of September 11
Category: Business and Money > Economics
Asked by: angusta-ga
List Price: $20.00
Posted: 04 Nov 2002 14:02 PST
Expires: 04 Dec 2002 14:02 PST
Question ID: 98649
I am looking for 'any' information related to "The Impact of September
11
on Air Travel" from different perspectives. Websites that can provide
actual statistic figures would be great.
Answer  
Subject: Re: The Impact of September 11
Answered By: bobbie7-ga on 04 Nov 2002 18:21 PST
Rated:5 out of 5 stars
 
Hello Angusta,

Thank you for your question.

There is a lot of news out there about "The Impact of September
11 on Air Travel". I've organized a digest of links to articles and
reports related to what you listed in your question.

“Perhaps no industry has suffered more than air transport, not only
because it was used to carry out this violence but because of the loss
of thousands of aviation related jobs and the long-term decline in the
confidence in air travel.”
http://www1.iata.org/911/index

Here is a 17 page report by the IATA titled “A Review of Air Transport
Following September 11”. This publication includes graphs and
statistics.
Source: IATA Website
http://www1.iata.org/NR/ContentConnector/CS2000/SiteInterface/pdf/911/sept11_review.pdf

Here is a press release from The U.S. Bureau of Transportation
Statistics  dated March 7, 2002
“BTS Indicators Report Shows September 11 Impact on Large Airlines”
http://www.bts.gov/PressReleases/2002/bts003_02.html

The Impact of Extreme Events in Decisions Under Uncertainty: A
Cognitive Perspective by Craig R. Fox - Duke University

A short excerpt from this paper:

“In the month following the terrorist attacks of September 11,
domestic air travel in the United States dropped more than 30%
relative to the same period the previous year. More than six months
later, revenuepassenger miles remain more than 10% below what they
were last spring (Air Transport Association, March 6, 2002). Such
reluctance to fly has obviously contributed to the recent recession in
the U.S. economy. Ironically, it may also contribute to an increase in
travel-related fatalities as people substitute flying with driving. As
Myers (2001) observes: “If we now fly 20 percent less and instead
drive half those unflown miles, we will spend 2 percent more time in
motor vehicles. This translates into 800 more people dying as
passengers and pedestrians. So, in the next year the terrorists may
indirectly kill three times more people on our highways than died on
those four fated planes.”
http://www.ldeo.columbia.edu/CHRR/Roundtable/Fox_Craig_Note.pdf

Bankruptcy

“The United States industry has been decimated by the impact of
September 11 on air travel. It lost more than $20 billion in 2001,
mostly after September 11, and is expected to lose another $10 billion
this year. US Airways has filed for bankruptcy and United Airlines
warned it may go the same way. American Airlines continues to slash
capacity and jobs in its search for stability.”
http://www.theage.com.au/articles/2002/08/21/1029114134002.html

Impact of September 11th and a Look Forward – Travelocity
Surveys graphs and charts in this 13 page publication
http://web.mit.edu/afs/athena.mit.edu/org/a/airlines/DC_conference/mikestacy.pdf

Couriers

September 11 - The Day We Will Remember
“For worldwide travelers and members of IAATC, the impact of September
11 has forever changed the routine of air travel. Some courier
services have suspended operations. Others have noted that fares have
dropped further. The situation for couriers has been a day-by-day one.
We haven't had any cancellations since the first few days after
September 11, said Jupiter Air Courier Representative Jojo Moscoso.
New York based Air Cargo Partners said that a lot of casual couriers
to London canceled in mid-September, but flights are picking up.
Source: Courier Org 
http://www.courier.org/impact.htm

The Bureau of Transportation Statistics reported that airline
employment dropped 11 Per Cent in 2001. There is a table with these
figures in this press release.

“The U.S. airline industry cut more than one out of every 10 jobs
during 2001, (...) Airline industry employment fell by 79,000 jobs, or
11 per cent, from 732,000 to 653,000, based on airline year-end
reports filed with BTS. The airlines dropped 58,000 full-time jobs and
21,000 part-time jobs during 2001.”
http://www.bts.gov/PressReleases/2002/bts008_02.html

Aviation Update and the Impact of September 11th
http://www.tourismfuturesintl.com/tourismanalystnologin/2002/february/page1.html

September 11 events impacts passenger traffic and cargo traffic as
well.
 
Passenger Traffic in Regions:
 
“October 2001 results show passenger traffic contracting in all
regions. Four regions registered double-digit declines: North America
(-21 percent), Africa (-13 percent), Europe (-11 percent) and the
Middle East (-10 percent). Drops were also registered in Asia/Pacific
(-9 percent) and Latin America/Caribbean (-7 percent). Among the
world’s top 30 passenger airports, only Beijing registered an increase
(+4 percent). While North American airports suffered the most;
European and Asia/Pacific airports were also heavily impacted: San
Francisco and Newark (-32 percent each), London- Heathrow (-20
percent), Rome-Fiumicino (-19 percent), Singapore (-13 percent),
Sydney and Hong Kong (-12 percent each).

Cargo:

Cargo volume handled continued its downward trend: North America (-14
percent), Europe (-10 percent), Latin America/Caribbean (-8 percent),
Africa (-7 percent), Asia/Pacific (-6 percent) and the Middle East (-5
percent). In an otherwise gloomy scenario, cargo handled in the
world’s busiest cargo airport, Memphis, continued its impressive
growth (+32 percent), followed by Los Angeles-Ontario (+12 percent)
and Dubai (+11 percent). Other airports saw their traffic contract
significantly. Among them: San Francisco (-37 percent), Chicago-O’Hare
(-31 percent), Dallas/Ft. Worth (-29 percent) and Brussels (-21
percent).
Source:Travel Daily News
http://www.traveldailynews.com/new.asp?newID=6664&catid=80

ACI-NA releases U.S. Airports economic impact report:
2002 
 
“Airports Council International - North America (ACI -NA) President
David Z. Plavin released a report on the  "Economic Impact of U.S.
Airports." The report, based on information collected from ACI-NA
member airports in 2001, includes economic statistics and specific
growth areas within the United States' aviation system, and highlights
our pressing need to address the looming congestion levels. (..) The
report also notes that this year has been one of radical change in the
air transportation system. As airports continue to recover from the
aftermath of September 11 and grapple with the impacts of the airline
industry restructuring, airports are showing growth in all areas of
activity including passenger and cargo.”
Source:Travel Daily News
http://www.traveldailynews.com/new.asp?newid=8844&subcategory_id=53

March 7, 2002
BTS Indicators Report Shows September 11 Impact on Large Airlines 
http://www.dot.gov/affairs/bts0302.htm

“Travel and leisure industries have suffered the worst job losses,
mainly among airlines, hotels, car rental firms, and restaurants. In
the last five months of 2001, the travel industry lost 237,000 jobs.
Fear of flying and an expanding recession caused many consumers to
cancel vacations and curtail discretionary spending immediately
following the attacks, and the airline industry continues to suffer.
In August 2002, US Airways filed for Chapter 11 bankruptcy protection,
citing decreased passenger loads and increased security costs since
September 11.”

“Is the government doing anything to help the airline industry?
Yes. In September 2001, Congress approved a $15 billion emergency
assistance package to help the airlines recover from the September 11
attacks. The package included $5 billion in cash payments to
compensate the airlines for their losses during the two days when the
government shut down air travel immediately after the attacks. The
industry bailout also includes up to $10 billion in loan guarantees.”
Source:Terrorism Answers
http://www.terrorismanswers.com/policy/athome_print.html

Travel Industry Bankruptcies since September 11, 2001:

- September 12 - Midway Airlines

- September 25 - Renaissance Cruise Lines

- October 2 - Swiss Air (resumed limited service October 5 under
bankruptcy protection)

- October 5 - Sabena Airlines (filed for bankruptcy protection)

- October 19 - United States Lines, American Hawaii Cruises,

- The Delta Queen Steamboat Company, Delta Queen Coastal Voyages
Source: The American Society of Travel Agents Website
http://www.astanet.com/travel/information/info_sbaloans2.asp

The Hassle Factor

“Delta Airlines estimates that loss of business resulting from the
hassle factor will amount to over US$ 600 million in 2002. The day
trip has basically disappeared from many business agendas and the
costs of spending a night away amid an economic slump has meant that
business people are finding alternatives to travel,” noted Bisignani.
“The technology exists to combine more effective security with
increased passenger convenience.”

Source: IATA Website
http://www1.iata.org/NR/ContentConnector/CS2000/SiteInterface/pdf/911/sept11_review.pdf

The following 27 page report examines the decline in air 
transportation in 2001, particularly post September 11; its impact on
airport operations, costs and services; and the economic effects
on Bay Area communities heavily dependent on vacation and business
travel.
http://www.bayeconfor.org/pdf/aircrisis.pdf

Us Airways Files Application for Federal Loan Guarantee
Arlington, Va.  June 10, 2002
http://www.usairways.com/about/press/nw_02_0610.htm

Bankruptcy looms for United Airlines
http://asia.news.yahoo.com/020815/6/h0b3.html

Here is an excellent 37 page report “Air Transportation After
September 11th” by Robert Stengel - Princeton University
http://www.princeton.edu/~stengel/AT911.pdf

Travel Changes since September 11
http://www.courier.org/travel.htm

Financial Condition of America’s Aviation Industry In Aftermath Of
September 11th Attacks To Be Focus Of Congressional Oversight Hearing;
http://www.house.gov/transportation/press/press2002/release354.html

Here you will find a wealth of links relating to the September 11th
events and the travel industry
Source: The Guardian - UK
http://travel.guardian.co.uk/airterror/0,1335,553882,00.html

Additional information that may interest you:

Economic Impact of Civil Aviation on the U.S. Economy 2002
http://www.faa.gov/asd/briefings/07-09-02_Tucker_ATCA_Berlin.pdf


Search Criteria:

The Impact of September 11 on Air Travel
The Impact of September 11 on Air Travel +statistics
Airlines +September 11


I hope you find this helpful and if any part of my answer is unclear,
please don't hesitate to ask for clarification.  I'll be happy to be
of further assistance!

Best Regards,
Bobbie7-ga

Clarification of Answer by bobbie7-ga on 05 Nov 2002 12:01 PST
Dear Angusta,

I'm glad you are pleased with my answer and thank you for the 5 star
rating and the tip.

Sincerely,

--Bobbie7-ga
angusta-ga rated this answer:5 out of 5 stars and gave an additional tip of: $2.00
Greate answer and excerpt, saved me alot of time. Thank you very much!

Comments  
Subject: Re: The Impact of September 11
From: iaint-ga on 05 Nov 2002 02:48 PST
 
Hi angusta

It's interesting to note that although long-haul flights, especially
trans-Atlantic, have suffered severely since the 11th September events
in the United States, there is at least one sector of the air travel
industry which has boomed since then. That is the low-cost "city hop"
carriers in Europe, for whom business has never been better.

For example, a quick search of the BBC News Online archives yields:
Ryanair profits up 71%: http://news.bbc.co.uk/1/2396147.stm
Easyjet and Go record passenger numbers up by 50% and 70%
respectively: http://news.bbc.co.uk/1/2097591.stm
And for a general analysis of the situation a mere three months after
the attacks: http://news.bbc.co.uk/1/hi/business/1717924.stm

I hope some of the above proves useful to you!

Regards
iaint-ga

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