International transmission of shocks in the airline industry

The impact of the current economic crisis on the geography of air traffic volumes: an empirical analysis

“…They found a transitory, negative demand shock of more than 30% and an ongoing negative demand shift of 7.4% that cannot be explained by the aforementioned or other factors. Gillen and Lall (2003) analyze the channels through which airline industry shocks are propagated across countries. Through the analysis of a sample of airline companies, they conclude that US companies were hit much harder by the September 11th crisis than Asian ones, with European companies lying in between.…”

Impact analysis of September 11 on air travel demand in the USA

“…The recent literature on the subject has taken two distinct views. One view is that the effect of September 11 was severe, widespread and immediate with airlines and tourism industry being particularly badly affected (Blake and Sinclair, 2003;Gillen and Lall, 2003;Hatty and Hollmeier, 2003). The other view is that before September 11, passenger traffic was already showing a downward trend, price wars were accelerating, and new competitors were taking business from the legacy hub-and-spoke carriers and thus the terrorist attack only exacerbated these problems (Costa et al, 2002).…”

Terrorism, war, and global air traffic

“…He also finds that the pricing of airline stocks was much less accurate for smaller airlines than for larger ones. A number of other papers consider the stock market effects, for example Gillen and Lall (2003).…”