September 11 and the World Airline Financial Crisis

Much of the post‐September 11, 2001, rhetoric has focussed on the idea that the terrorist attacks in the USA catapulted the world airline industry into a financial crisis. But are the current problems in the world airline industry so readily attributable to the events of September 11? Was the shock to the industry sufficient to create the current situation, or are airlines around the world attempting to justify bailouts in order to cover a more systemic industry crisis? The purpose of this paper is to offer an independent financial assessment of the impact of September 11 on the viability of world airlines.