Social and Behavioral Sciences Commons^™

Relationships, Layoffs, And Organizational Resilience: Airline Industry Responses To September 11, Jody H. Gittell, Kim Cameron, Sandy Lim, Victor Rivas

Research Collection School of Social Sciences

The terrorist attacks of September 11, 2001, affected the U.S. airline industry more than almost any other industry. Certain airlines emerged successful and demonstrated remarkable resilience while others languished. This investigation identifies reasons why some airline companies recovered successfully after the attacks while others struggled. Evidence is provided that layoffs after the crisis, although intended to foster recovery, instead inhibited recovery throughout the 4 years after the crisis. But, layoffs after the crisis were strongly correlated with lack of financial reserves and lack of a viable business model prior to the crisis. Digging deeper, the authors find that having a …