Construction Industry

Introduction

Airlines are companies that are owned by the state national airlines or private business enterprises which offer air transportation for passengers or carry cargo to different destinations . The companies may own or lease the airplanes which will be used in offering the services Sometimes , airlines form partnerships with new companies to improve their services and efficient

Airlines companies differ on capacity there , are those which operate one plane and the mainly ferry cargo or and mail . Where as there are those which are full fledged that operate hundreds of airplanes

caring passengers allover the world . This can be termed as intercontinental Other can be regional operating in a specific region or domestic operating in a local area such as a country . The industry is one of the most growing as the world witness improvement in business and tourism industry . However the September 11 attack coupled by government polices on economic and political safety measures have derailed some growth that had been realized

The major setback in this industry was witnessed in the year 2001 , after the September 11 terrorist attack on the World Trade centre in New York in United States . The impact of the attack on the airline industry is still vibrating up to now . The immediate effect was a reduction of passengers on the airlines . This also had a very hard impact on the airports which gets they revenue from fees collected from landing fees of airplanes , rents and concession sales . It is estimated that the industry experienced a 20 in reduction of air traffic . The reduction in the revenue meant that the airport authorities put on hold there expand ion plans and reduce on maintenance and managerial expenses . Instead new security measures in the airports were put up , improved and modernized .The general effects of security measures which were to be implemented in the air travel industry included passenger screening , luggage screening and the use of scanners to detect for any explosives , had an enormous financial effect on the airports has it was estimated that it will require around 8 .6 billion in personnel alone to put up all this new security measures . The new scanning technology of the passengers and their luggage has increased in time in screening the passenger from 30-45 seconds to between 3-5 minutes , which is daunting thing as many passengers are opting for other options on the market . These security measures therefore have down ward effect on demand . This is further emphasized in a survey carried by Northwest Airlines (NWA ) which showed that the public will fly more if the airport processing duration was reduced . And a direct impact on fares as the financial burden is transferred to the final use who is the passenger

In short , the major impact of September 11 on the airline industry is low demand , high supply , and increase in costs (due to security measures and labor ) and subsequently reduction in revenues . Currently the situation is stabilizing and the demand is picking up although costs are...