Fallout from the terrorist attacks has indeed been far-reaching.
Some businesses had clients in affected areas; others suffered as
customers cut spending due to economic uncertainty.
Charter airlines and flight schools were among those hardest hit
in the early days after the attacks. According to a study released
on September 27, 2001, by the National Air Transportation
Association (NATA), charter airlines, flight schools and other
aviation-related businesses lost $300 million to $400 million and
had to furlough thousands of employees during those first weeks.
Since that time, however, many have seen gradual increases--and
even spikes--in business.
"People are even more frustrated with the airlines because
of the delays," says Clif Stroud of the NATA. "That's
a big advantage of charter. There's also the security advantage
of knowing with whom you're traveling and what is being brought
on board."
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Michael and Maureen Tarascio's charter business and flight
school came to a screeching halt when the Federal Aviation
Administration shut down Republic Airport in Farmingdale, New York,
where Air East Airways Inc. and Air East Management Ltd. are
located. Because of the airport's proximity to Ground Zero, it
remained closed for almost a month after September 11 and then
under restrictions until December 31.
"Charter
airlines, flight schools and other aviation-related businesses lost
$300 million to $400 million during those first few weeks. Since
that time, however, many have seen gradual increases--and even
spikes--in business."
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"It was hard," says Maureen, co-owner and operations
manager. "We had 19 aircraft to consider and notes that still
had to be paid."
Maureen, 44, estimates the $3.5 million company lost $2,000 to
$4,000 per day. Since then, they've made up those losses in a
big way as charter business has jumped more than 50 percent in the
past year. In an uncomfortable twist, the attacks have been a boon
to Air East's business. "We took on a new jet,"
Maureen admits. "We saw the increase in business, and we saw
that there was a need for a third jet."
Clyde O'Connor has experienced a similar boost at Execstar
Aviation, his $4 million private charter company in Fort
Lauderdale, Florida. After the first two weeks--when he considered
closing up shop--O'Connor saw a "huge increase" in
business at the 22-employee operation. He brought home regular
customers stranded by groundings and delivered safety-conscious
tourists to their destinations.
The tourist side has become a new line for Execstar, and
O'Connor admits: "If business stays the way it is, I would
say we are better off than we were [before] September 11.
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