9V-SPK
Posts: 1576
Joined: Thu Aug 16, 2001 11:53 am

Effects On Airline Industry After Terrorism Attack

Fri Sep 21, 2001 3:48 pm

Just Yesterday I heard that United was gonna cut HKG-LAX and HKG-SIN routes.Actually what's the effect except this scene?How about Unemployment?How about Reducing the expenditure?Will Airlines cut other routes,especially to the U.S?Will Airlines still purchase new aircrafts,just like SQ is still planning to buy 15 A380?Will more Airlines get Bankrupt,just like Midway?Will there be new routes opening,just like SQ was planning to fly to Las Vegas?Will there be a big difference from now on when we travel???
 
jwenting
Posts: 9973
Joined: Mon Apr 23, 2001 10:12 pm

RE: Effects On Airline Industry After Terrorism Attack

Fri Sep 21, 2001 3:57 pm

Longterm effects remain open.
In the short term:
- less flights on routes that now have many
- smaller aircraft on routes that now have few flights with large aircraft
- removal of routes that are marginally profitable if at all (some of these may be turned into cargo-only instead).
- more expensive tickets, except on US internal flights where ticketprices may even drop to increase passenger volume
- cancellation of aircraft orders. Fleetreduction and keeping existing aircraft flying longer. Possibly some orders may be changed into orders for smaller aircraft (e.g. 737 instead of 767, A319 instead of A321, etc.).
- layoffs to match the reduced need for staff due to reduced capacity.
- cancellation of all non-essential services and programs (for example KLM has, effective immediate, stopped all IT programs and terminated all contracts with outside consultants).
I wish I were flying