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The effects of 9/11 on the economy

Lorena B
Senior Editor, TipsHire
the effects of 9 11 on the economy

One of the biggest catastrophe happened on September 11, 2001, when an Islamic terrorist group crashed two planes into the well-known Twin Towers, causing about 3000 deaths and over $10 billion in infrastructure and property damage.

Named also “the new Pearl Harbor,” the terrorist attack of September 11, 2001 has destabilized the US economy and increased global economic vulnerability. The economic effects at the New York level have reverberated rapidly on the US national economy, and the repercussions of the terrorist attack on the morning of September 11, 2001, were felt globally.

Apart from the US, other States’s foreign policy changed after 9/11. Very soon after the US’s prompt response to terrorist attacks, states that at first seemed rival would join the US in the fight against terrorism. Relations with many states will be defined in the light of co-operation after September 11. The US has reached new levels of cooperation with countries like Russia, China or India. The strong relationship between the US and the UK has led to joint military action in Afghanistan and Iraq.

The impact over airline companies (Globally and in the USA)

The tragic events of September 11, 2001, had a strong impact not only in terms of loss of human lives and material destruction. The terrorist attacks have left a shadow of doubt and have economically influenced the air transport industry which, at least statistically, was supposed to be the safest means of transport.

After the attacks, the airports were closed down, and many flights have been canceled; the passengers were afraid to travel even after the reopening, which led to a reduction of 30% of US Air services demand. Moreover, many companies suspended their activities, causing a large number of unemployment. Air operators lost $ 13 billion in 2001 and a hole of 11.3 billion in 2002. The commercial aviation sector only returned in 2006.

The impact over American Airlines Companies:

– Closing the airspace;

– Passenger traffic decreased by 5.9% in 2001 compared to 2000

– Airlines have tried to balance the decline by reducing transport capacity;

– Internationally, after attacks, demand for air services dropped;  – Financial performances: United States airlines revenue fell from $ 130.2 billion in 2000 to $ 107.1 billion in 2002;   – Number of employees: In 2000, US passenger companies had 520 600 employees. Until 2003, the figure dropped by 14.6% to 444,700.  -Governmental damages: The United States Aviation Safety Act was approved on September 23, 2001, with airlines receiving $ 5 billion in damages.

New security measurements taken by airline companies

Collapse of the World Trade Center towers, a symbol of the US economic power, was an unprecedented blow to the Americans.

Today, the chances of a 9/11 type of tragedy are small. The airline companies were investing a lot of time and money during these years in their flights safety, trying to prevent such a tragedy to happen again.

Before 9/11, the Transportation Security Administration (TSA) didn’t exist. The TSA was created as a consequence of the 9/11 attacks.

Now, Cabin doors from airplanes are protected for the safety of the pilots, and the screening process has become more and more detailed and long.

Worldwide, states have begun allocating more funds to national security, poorly defined by 9/11. Thus, financial resources that could have been used for the development of other areas of activity have been directed to the Airlines Security, precisely to prevent the spread of terrorism.

Conclusions

The terrorist attack on the morning of September 11, 2001 is a key moment in the history of the world economy. The world faces a terrifying challenge that can change the course of history at any time. Terrorism has exceeded any limit, but has not yet reached its climax.

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The effects of 9/11 on the economy
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One of the biggest catastrophe happened on September 11, 2001, when an Islamic terrorist group crashed two planes into the well-known Twin Towers, causing about 3000 deaths and over $10 billion in infrastructure and property damage.
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TipsHire

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