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Security may put executives out of flights
The attempt by an Al Qaeda-linked Nigerian Muslim to blow up a flight at Detroit couldn't have come at a worse time for the airline industry.
The attempt by an Al Qaeda-linked Nigerian Muslim to blow up a flight at Detroit couldn't have come at a worse time for the airline industry.
Having been bled by the 9/11 terror attacks, then high fuel costs and now the global recession, the airline industry's hopes of improving its financial health have been delivered a big blow by the Christmas Day attack.
Since 9/11, the global airline industry has accumulated losses of over $50 billion.
But with the worst of the current recession likely over, many North American airlines have been reporting a higher occupancy rate in recent months.
"This attack is a big blow. It will undo the gains made by the industry in recent months," said an Indian-origin aviation businessman with operations across North America, who asked not to be named.
A ban on carry-on bags and use of laptops during the last one hour of the flight will be the last straw for frequent travellers.
"People are going to cut down on their air travel because of these hassles,” he said. "Business and corporate people use flight time to dispose of work by using laptops. If they are not allowed its use for one hour in a two-three hour flight, their productivity will suffer.
"Add to this the extra time these executives will lose because of security checks and long lines. So why would they fly?" he said.
Corporate people may now prefer video-conferencing to frequent travel to interact with their executives in other locations, he feels, and since business class travel accounts for a huge chunk of airline revenues, any dip in this is bound to hit airlines hard.
