The potential reduction in passenger demand due to safety concerns is a real issue facing airlines. This isn't necessarily due to inherent dangers of flying, but external factors which can leave passengers vulnerable. The fear instilled in customers from the 9/11 attacks is a prime example. When the federal government reopened airports, the majority of airlines experienced upwards of a 30% reduction in passenger booking for the next several months. Thus, congress created the Air Transportation Stabilization Board, prompting nearly $10 billion in loans for faltering airlines. Interestingly, this decision negatively impacted Southwest, as US Airways and United Airlines (competitors) were the two most prominent airlines assisted by the government bailout.
(source: http://traveltips.usatoday.com/effects-911-airline-industry-63890.html )
No comments:
Post a Comment