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Comparing the Impact of the September 11th Terrorist Attacks on International Airline Demand

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  • Harumi Ito
  • Darin Lee

Abstract

This article compares the impact of the September 11th terrorist attacks and its after-effects on airline demand in the Australia, Canada, Europe, Japan and the US. Using a variety of time-series data, we compare how changes in risk perception following the attacks impacted domestic and international demand. Moreover, we decompose the terrorist attacks' effects into their transitory and ongoing components on airline demand.

Suggested Citation

  • Harumi Ito & Darin Lee, 2005. "Comparing the Impact of the September 11th Terrorist Attacks on International Airline Demand," International Journal of the Economics of Business, Taylor & Francis Journals, vol. 12(2), pages 225-249.
    • Handle: RePEc:taf:ijecbs:v:12:y:2005:i:2:p:225-249
    DOI: 10.1080/13571510500127931
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    5. Ito, Harumi & Lee, Darin, 2005. "Assessing the impact of the September 11 terrorist attacks on U.S. airline demand," Journal of Economics and Business, Elsevier, vol. 57(1), pages 75-95.
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    Cited by:

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    3. Percoco, Marco, 2019. "Environmental consequences of dread behavior: A note on 2005 London bombings," Research in Transportation Economics, Elsevier, vol. 73(C), pages 83-88.
    4. Hanson, Daniel & Toru Delibasi, Tuba & Gatti, Matteo & Cohen, Shamai, 2022. "How do changes in economic activity affect air passenger traffic? The use of state-dependent income elasticities to improve aviation forecasts," Journal of Air Transport Management, Elsevier, vol. 98(C).
    5. Budd, Thomas & Suau-Sanchez, Pere & Halpern, Nigel & Mwesiumo, Deodat & Bråthen, Svein, 2021. "An assessment of air passenger confidence a year into the COVID-19 crisis: A segmentation analysis of passengers in Norway," Journal of Transport Geography, Elsevier, vol. 96(C).
    6. Ramiah, Vikash & Cam, Marie-Anne & Calabro, Michael & Maher, David & Ghafouri, Shahab, 2010. "Changes in equity returns and volatility across different Australian industries following the recent terrorist attacks," Pacific-Basin Finance Journal, Elsevier, vol. 18(1), pages 64-76, January.
    7. Jimenez, Edgar & Suau-Sanchez, Pere, 2020. "Reinterpreting the role of primary and secondary airports in low-cost carrier expansion in Europe," Journal of Transport Geography, Elsevier, vol. 88(C).
    8. Gudmundsson, S.V. & Cattaneo, M. & Redondi, R., 2021. "Forecasting temporal world recovery in air transport markets in the presence of large economic shocks: The case of COVID-19," Journal of Air Transport Management, Elsevier, vol. 91(C).
    9. Dey Tirtha, Sudipta & Bhowmik, Tanmoy & Eluru, Naveen, 2022. "An airport level framework for examining the impact of COVID-19 on airline demand," Transportation Research Part A: Policy and Practice, Elsevier, vol. 159(C), pages 169-181.

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    More about this item

    Keywords

    Airline Demand; International Terrorism; September 11th; Risk Perception; JEL Classifications: R41; L16; L93;
    All these keywords.

    JEL classification:

    • R41 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Transportation: Demand, Supply, and Congestion; Travel Time; Safety and Accidents; Transportation Noise
    • L16 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Industrial Organization and Macroeconomics; Macroeconomic Industrial Structure
    • L93 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Air Transportation

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