Is the New Terror Threat Going to Destroy the Airline Industry?

On December 24, 2009, the airline industry almost experienced another tragedy because of a breach in airport security. As a result of this not only has airport security been tightened but it has also called for an immediate re-evaluation of security procedures. Many of these new procedures are going to do several things such as; increase flight delays, increase ground time, and increase baggage check-ins. These newly heightened security measures will have a major effect on the airline industry.

After 9/11 many people that did a majority of their travel by plane were skeptical about flying. Almost nine years later airline passengers had regained confidence in traveling by air. Many people prefer flying over driving to their preferred destinations. Now that the issue of airport security has resurfaced some people are considering their air travel. This will be a major financial blow for the airline industry. Most of the major airlines were able to endure their turbulent financial times thanks to a stimulus package given them under the Bush (43) administration. The airlines have exhausted all of their means of assistance from the government; there are too many other areas of commerce that are struggling. One group of people in particular that will hurt the airline industry if they reduce their air travel are the frequent business flyers. These are the air travelers that fly thousands of miles annually. Most of them pay an average plane ticket price of $1,200 round trip. Seasonal air travelers will not have a tremendous effect on the airline industry if they use alternative means of travel.

Airlines have already been forced to reduce the number of the flights and ground times to cut costs. If the amounts of air travel passengers are reduced airlines are going to spend more money in attempts to attract new customers while trying to regain the old ones. It would be in the airlines best interest to come up with some type of contingency plan. The airline cannot afford to suffer another financial setback as they did almost nine years ago because if so it could be devastation beyond repair.