How 9/11 really changed flying for consumers

Those of us who fly on commercial airliners - and that's nearly everyone today - do not need a major anniversary to be reminded of how the 9/11 attacks transformed flying. We are reminded of the decade-old tragedy every time we peel off our shoes and belts for screening at an airport.

But there are many more subtle ways in which the terrorist attacks changed flying for consumers - mostly for the worst. So the arrival of Sunday's big anniversary prompts us to list a few of the changes that may not be so obvious, but which all derive either directly or indirectly from the upheaval that 9/11 caused in the transportation industry. Here's one list, from this veteran travel reporter who was among those who covered the industry through its post-2001 blues.

The federalization of security
This resulted directly from 9/11, as the Transportation Security Administration (TSA) was formed to assume responsibility for all airline security from the Federal Aviation Administration (FAA) and the airlines themselves, which had cooperated in providing security before. The TSA later became part of the Cabinet-level Department of Homeland Security, which also wrapped in many other security-related services ranging from the Federal Bureau of Investigation to the Coast Guard. There have been two terrorist attempts but, thankfully, no repeats of the 9/11 attacks in the decade since. The TSA's reign has not been trouble-free, however. In 2008 we found there are "still major security lapses in air travel six years after 9/11" and recommended the government institute more effective screening measures, create a second cockpit barrier, and improve training of TSA officers. Unfortunately these suggestions still have not been acted upon.

A decline in competition
Air travel dropped precipitously for years after 2001 and the resulting financial losses have cut back the number of choices consumers have when it comes to airlines. According to the Air Transport Association, 39 domestic airlines have filed for bankruptcy since then, including four major carriers: Delta, Northwest, United, and US Airways (which has filed twice). There's also been significant consolidation since the terrorist attacks: Over the last six years, Republic acquired Midwest and Frontier, and major mergers were forged between US Airways and America West, Delta and Northwest, United and Continental, and Southwest and AirTran. While you can still find travel deals, as we've also pointed out, the consolidation is not necessarily good for consumers in the long run. Last year, our parent organization -- Consumers Union -- provided testimony before both Houses of Congress, warning that further contraction could lead to "fewer flights, less consumer choice, and higher fares."

Fewer airline jobs
In May 2011 there were some 472,919 full time employees working for U.S.-based airlines, or about 25% (159,051) fewer than in May 2001, according to U.S. Department of Transportation figures. Yet load factors—the percentage of occupied seats on airplanes—have been steadily rising and are now at levels not seen since the mobilization for World War II: In 2010, an average of 82.1% of seats were full on U.S. flights.

More outsourcing
Airlines have been able to manage on a smaller work force in part by farming out work that used to be done by airline employees. C.U. first noted a surge in airline maintenance outsourcing in 2007, and this past June we noted that we were concerned about the FAA's oversight of outside aircraft repair stations. And outsourcing can take myriad forms. Consider that today 53% of all domestic flight departures are operated by regional partners of larger airlines, which may operate -under lesser standards than the major airlines.

Flying that's even less enjoyable than before
As flights have grown fuller, customers have become less happy with air travel. A survey of nearly 15,000 readers published in the June issue of Consumer Reports magazine, for example, found widespread dissatisfaction with domestic airlines, particularly in the areas of seat comfort and "excessive fees" - things like change fees, in-flight food charges and baggage fees.

It would be nice to conclude that these post-9/11 changes were temporary, and consumers could look forward to improvement on the issues listed above. But that's unlikely. Consider those annoying fees. U.S. carriers generated $21.5 billion from "ancillary revenue" for such services in 2010, and - in an industry desperate for cash -- these fees, and other 9/11 aftershocks, are probably here to stay.

—William J. McGee