The September 11 terrorist attacks on the World Trade Center and Pentagon set the stage for an upheaval in the U.S. airline industry unseen since the dawn of deregulation. But while virtually no one besides the enemies of America welcomed the negative economic effects, some airlines may very well emerge from the crisis in a stronger competitive position.
How, one may ask, could an airline benefit from such a far-reaching atrocity? The answer may lie in a loophole in labor contracts that permits airlines to ignore certain job-protection guarantees in the event of a national emergency known as a force majeure clause. Translated literally into English as “greater force” and defined as an unexpected or uncontrollable event, force majeure in this case presented an ideal opportunity for major airlines to dismantle unprofitable segments of their businesses and place more emphasis on service from their lower cost regional affiliates, suspect elements within the Air Line Pilots Association (ALPA).
