The events of 11 September 2001 have had serious repercussions throughout the entire Travel Industry. Airlines have possibly been the worst hit, with loss of revenue, increased security and insurance costs. In the USA, Airlines were rescued by a cash injection by the government. Nevertheless, a lot of airline employees lost their jobs and several small airlines went out of business.

Swissair who owned a 20 percent stake in SAA almost closed their doors. The Swiss Government has guaranteed tier operation until March 2002, by which time they must have found alternative financing. The South African Government, SAA’s major shareholder will have to buy back Swissair’s shares.

Just prior to September 11 high operating costs and reduced profits made several foreign airlines serving South Africa withdrew their services from South Africa, giving the remaining airlines a bonanza. The reduction in seats meant that the cheaper airfares were soon sold out forcing consumers to pay more.

The Airlines serving South Africa were given yet an another bonus directly because of the events of September 11. South Africa was suddenly considered to be a safe destination by overseas visitors and suddenly there were even fewer seats available on overseas flights for the South African Consumer.

All these factors will bring about higher airfares and fewer discounts. Consumers will have to plan ahead and watch the travel adverts in the weekend papers more carefully in order to find airfare bargains.