Crisis, and the Aftermath of September 11: Two Airlines and Issues of Liability

Anderson, William L.; Shah, Amit
June 2004
American Business Review;Jun2004, Vol. 22 Issue 2, p13
Academic Journal
It has been well documented that the terrorist attacks of September 11, 2001, had a hugely negative effect upon the airline industry. However, because of their direct involvement in the terrorist attacks, two airlines were especially vulnerable in the aftermath of the disaster: American Airlines Inc. (AA) and United Airlines Inc. (UAL). This paper examines the stock market effects upon AA and UAL to see if the markets punished them more severely than the rest of the airline industry. It has been found that market reactions to airline crashes were different depending upon whether or not the airline involved in the crash was seen to be at fault or not. Airlines that were not seen to be at fault did not suffer in the markets as badly as did airlines that clearly were liable for the crashes. The author also wish to emphasize that the September 11 attacks were not the only factor in the financial problems faced by the airlines.


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