The Economic Effect of September 11th on the Airline Industry.

Essay by ShanenotyzeCollege, UndergraduateA+, April 2003

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"Like a good neighbor...State Farm is there." When I heard this commercial and the motto State Farm was professing, I could not help but think of how the government could also use this saying. In wake of September 11th, the government has made many attempts to stabilize the economy with major relief aimed at the airline industry. Within a week of the kamikaze terrorist attacks in Washington and New York, the government enacted a $15 billion financial aid package designed to help the crippled airline industry. "A safe, visible and effective commercial air travel system is important to America's economy and to our way of life," is one statement made by a representative to the House soon after this package was passed by Congress. When I first heard about this relief effort it made sense to me why the government would do this. First of all, business and trade rely strongly on the ability to travel from place to place, and the most convenient and economical way of travel these days in by air.

When something like September 11th to happened, causing fear of travel and fear of dying, it is only plausible that the government would try to get the American hopes back up and ensure as much safety and protection for the times ahead. It was imperative for the federal government to lend aid to the airlines because of increased costs for security. The only way to make Americans feel safe to travel again is to insure their safety and this can only be done with raised security precautions, detailed luggage checks and multiple metal detector tests. With increased unemployment within the airline industry, aid is also important for keeping vital people such as pilots and stewardess working. The airline industry is not the only aspect of travel...