Terrorism and Business

December 26th, 2009 - Posted by Admin

Airlines are a major business, as anyone who has ever paid for a ticket knows. That is especially true during the holiday season, when air traffic skyrockets (no pun intended). However, passengers should be expecting extra delays right now after an attempted terrorist attack was foiled on Christmas Day. Increased security in every airport will, then, delay flights, passengers, and profits.

AMR Corp.’s American Airlines and and UAL Corp.’s United Airlines, the Nos. 2 and 3 U.S. airlines by traffic, respectively, said ramped-up security measures were contributing to delays of anywhere from 20 minutes to four hours on cross-border flights because of heightened security. Air Canada, a large Canadian airline, reported “significant delays” on U.S.-bound flights.

This will not likely effect overall business in the industry, but it will have a slightly negative effect on the economy, I’m sure.