Management of Engineering and Technology
The events of September 11th had some of their worst economic effects on the U.S. airline industry, leading to a dramatic decrease in passenger demand and substantially higher airfare costs. But even before that day, the industry was facing bad times, with few airlines anticipating profitable performance in 2001. Some have argued that the deregulation in 1979 has contributed to the industry's problems. Everyone agrees that the airlines need to find a quick solution to overcome that $90 billion debt. But while the industry can keep blaming terrorists for its descent into crisis on September 11th, it can only blame itself for being so financially vulnerable on that date. After September 11th, planes have been flying at a load factor of over 70%. However, the industry financial debt is still increasing. This paper analyzes the strategy and policy issues the airline industry is currently facing after the events of September 11th.
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Chung-Sine, Christophe; Dachavorawuth, Kitti; Demirci, Cem; Hallum, Don; Kaplan, Onur; and Yates, Diane, "Strategic and Policy Issues: Strategic Issues in the Airline Industry" (2003). Engineering and Technology Management Student Projects. 1614.