Reduction In Passenger Demand
Directly after the terrorist attacks of 9/11 the government closed airports, cancelling thousands of flights and costing the airlines millions. Even when airports reopened, passengers were still uneasy about air travel and experienced a large drop in demand during the initial shock. After the attacks, businesses were forced to temporarily suspend non-essential travel for their employees. According to a study at Brown University, decrease in demand lasted well into 2003. The airline industry was grounded.
Transportation Security Administration
The Aviation and Transportation Security Act, passed in November, 2001, from which the Transportation Security Administration or TSA was created and made airport security a federal responsibility. A division of the Department of Homeland Security, their duties are to exercise the authority over the traveling public in the United States. When you fly, you and your bags are inspected by the TSA.
Airline Rules
Immediately after the attack of September 11, airlines began to make security rules more strict. Liquids, sharp objects and other various items have became severely restricted. Tougher screening measures were put in place and strictly enforced. More attention was placed on passengers as well as their belongings. Passengers were advised to arrive hours before flights to ensure enough time to allow for more detailed security screening. The days of passengers as well as employees being able to move freely about the terminals without a specific reason would be unthinkable.