US Commercial airline performance after September 11, 2001: decomposing the effect of the terrorist attack from macroeconomic influences

    Authors

    V. S. Guzhva;N. Pagiavlas

    Comments

    Authors: contact us about adding a copy of your work at STARS@ucf.edu

    Abbreviated Journal Title

    J. Air Transp. Manag.

    Keywords

    US airlines; vector autoregression model; terrorist attack; impact; effect; UNIT-ROOT; Transportation

    Abstract

    The US airlines' revenue passenger miles series are examined to objectively assess the effect of the September 11th terrorist attack on the performance of the industry controlling for the general economic conditions. A Vector Autoregression model (VAR) with revenue passenger mile and real gross domestic product series is utilized. The estimated effect of the attack supports the federal government's appropriation of $5 billion cash compensation to the airlines. Analysis at the individual air carrier level confirms that not all the US major and regional airlines were affected in the same manner. United, Northwest, US Airways, and Delta account for more than 63% of the aggregate decline in the US airline industry performance. Three air carriers: JetBlue, Aloha and Atlantic Southeast were able to significantly improve their performance immediately following the September 11th attack. (C) 2004 Elsevier Ltd. All rights reserved.

    Journal Title

    Journal of Air Transport Management

    Volume

    10

    Issue/Number

    5

    Publication Date

    1-1-2004

    Document Type

    Article

    Language

    English

    First Page

    327

    Last Page

    332

    WOS Identifier

    WOS:000224009300005

    ISSN

    0969-6997

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