The airline industry in North America has been seriously affected by these events. U.S. Airways said it would lay off 11 000 employees. Continental Airlines announced it would lay off 12 000 employees. American, Northwest, Continental and US Airways have also announced a 20 per cent cut in schedules as traffic has dropped by more than half. In Canada, Air Canada has reduced its flights to the U.S. by 20 per cent. It will monitor demand on domestic and international routes before deciding on further capacity or employee reductions. The Boeing Aircraft Company has announced it plans to lay off 30 000 employees.
Clearly air travel in North America will now be very different. Security at Canadian airports has been strengthened. Transport Canada has recommended that air passengers arrive several hours before departure and to expect lengthy lineups. Curbside checkin counters have been removed at U.S. airports. Self ticketing machines have been removed from Canadian airports. David Collenette has announced that the doors to the flight deck on all Canadian flights are to be kept locked, however he declined to put armed sky marshals on all commercial flights.
Could such hijackings have taken place in Canada? Over a 12 month period, Transport Canada conducted a National Infiltration Test at various Canadian airports, where employees attempted to smuggle on board a wide range of contraband articles such as, fake grenades, guns, knives, etc.The failure rate was 18.3 per cent, which means that about one in five passengers could board a plane with an illegal weapon. Obviously, security at Canadian airports is in need of a major overhaul.
Robert Milton, president of Air Canada, has appealed to the federal government for a $3 to $4 billion aid package. This amount is about one tenth of what U.S. airlines are collectively seeking. Air Canada wants equivalent government aid to be able to compete. The proposed air package would consist not only of cash but would include tax deferrals, loan guarantees and government assuming costs for security measures, however Air Canada could scale down it s request depending on the amount of money offered to U.S. carriers.
Transport Minister David Collenette said on Wednesday that he is not yet ready to come to Air Canada's aid, despite a major bond rating service's grim view of the airline's situation after last week's terrorist attacks. Mr. Collenette said the government cannot rush to compensate one company, when many companies and industries suffered major losses in the attacks that temporarily shut down airspace and border crossings.
As many as one in five people working in Canadian travel agencies could lose their jobs, and some agencies will face bankruptcy because of the huge impact the terrorist attacks have had on travel. Louise Crandell, a spokeswoman for the Association of Canadian Travel Agents said representatives of the industry, which employs 30 000 people in Canada and sells 70 per cent of airline tickets, will meet with Mr. Collenette in early October.
Other modes of transport became very popular during the period after the terrorist attacks. Passenger volume at VIA Rail increased last week by 30 per cent over the seasonal norm, while Greyhound served 40 per cent more customers. Whether both can make long-term gains from travellers inconvenienced or frightened by the new realities of air travel remains to be seen. Amtrak announced that passenger loadings had doubled in the U.S.