9/11 Case Study

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Delta Airlines The tragic event of 9/11 caused a crisis across many business spectrums, but one area was affected greatly; the airline industry. September 11, 2001 is a day that airline executives, employees, passengers, law enforcement, government officials, and the general public will never forget. Over 3,000 people were killed in the terrorist attack where, 19 terrorist belonging to the group al-Qaeda hijacked 4 US aircraft belonging to United and American Airlines (Timeline, 2014). Millions of viewers watched as the media displayed videos of two of the aircraft crashing into the Twin Towers, a third aircraft crashing into the Pentagon, and the fourth aircraft crashing in a field in Pennsylvania which was believed to be heading to either …show more content…
US airlines reported “losses of $19.6 billion” during 2001 through 2002 and by 2005 the losses reached a total of “57.7 billion” (Webcache.googleusercontent.com, 2014). Some of the losses were a result of damages caused by the attack and the decrease in passenger travel accounted for the remaining losses (Webcache.googleusercontent.com, 2014). The employment sector in the airline industry also faced a drastic impact. US airlines employment fell from “520, 600 workers” in 2000 to “378,100” in 2010 and did not see an increase until 2011 (Webcache.googleusercontent.com, 2014). Passenger growth picked up in 2004 and airlines began to see a small glimmer of light at the end of the tunnel, but they were not out of the red zone yet (Webcache.googleusercontent.com, 2014). As it began to appear that the aviation industry’s economic status was starting to improve, the industry was faced with three more worldwide disasters; an increase in jet fuel prices, a declining economy, and Hurricane Katrina (Money.cnn.com, 2014). Airlines began making operational cuts in order to stay afloat financially and rise above their competition during this financial crisis (Money.cnn.com, 2014). Delta airlines cut seats on international and domestic flights and reduced and ended flights flying from “Cincinnati to London 's Gatwick Airport and Frankfurt” and “Atlanta and Detroit to Mexico City” (News, 2014). To remain competitive during this economic downfall Southwest Airlines, one of Delta’s competitors, cut non profitable flights, added fees, and continued to have airfare sales and promotions to gain new and keep old customers (News, 2014). This was a rough and unsteady period for the aviation industry. After years of negative profit margins starting in 2001, and facing more global economic issues, Delta Airlines and many of its competitors filed for bankruptcy (Webcache.googleusercontent.com,

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