Exploring The Impact Of Security Concerns On Airlines' Financial Viability

2161 words - 9 pages

Aviation transportation and its services for business and leisure travel are relied upon worldwide and prior to the attacks on September 11, 2011, U.S. airlines were experiencing the effects of a weak economy. The effects of September 11th, 2001 on the United States have caused great harm and concern towards the economy and an already diminishing aviation industry. Airlines were: going bankrupt; air fare and fuel costs were on the rise; and layoffs further complicated the conditions of the aviation industry. Strengthening the vulnerabilities in aviation security has received a great deal of consideration by Congress (Dillingham, 2003). On November 19, 2001, Congress enacted the Aviation and Transportation Security Act (ATSA) which created the Transportation Security Act (TSA) within the Department of Transportation (DOT). The primary responsibility of TSA was to enhance security measures and meet congressional mandates related to aviation security. The allocation of resources and the demand for additional federal funding exceeds the amounts made available which is a concern for TSA and Congress. The significant concerns of future threats brings to light the importance of aviation funding and its impact on security measures in order to enhance multiple layers of aviation security to prevent or mitigate future attacks.
Keywords: funding, aviation, security measure,

Introduction
Airport security and procedures have undergone various transformations since the attacks of September 11, 2011. The attacks on the World Trade Center and the Pentagon by Al-Qaeda exposed the latent failures of security measures with the United States’ aviation and airport safety measures. Preceding the attacks of September 2001, civil aviation security measures were vulnerable and commercial aircrafts had previously been hijacked and used in attempts by terrorist to publicize their causes (Simonsen & Spindlove, 2012, p. 460). The financial situations of most airlines were in a delicate situation prior to 9/11. Furthermore, decreases in revenues resulting from downturns in air travel, high fuel prices, and maintaining operating costs have contributed to the troubled conditions of the aviation industry.
An airline’s ability to function, operate, and stay in business can be dependent on the state of the economy and their gross net profits. Airlines are faced with the costs of imposing security modifications to prevent future attacks. Funding for security modifications can be provided by the government and other key stakeholders when airlines are facing financial difficulties. A decrease in revenue and a weakened economy suggests airlines are in no state to absorb additional costs or pass those costs off to the consumer. Aviation funding for security modifications can be a heavy task financially that should not become the sole responsibility of airlines.


Aviation State before 9/11
Prior to 9/11, the economic state of the United States aviation industry was in troubled...

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