What did the American government do when the country’s airline industry was in t

Although the terrorist attacks of September 2001 hurt the aviation industry (which was already in the doldrums), the resulting turmoil provided an opportunity to reshape a troubled sector. While America’s federal government propped up its ailing airline industry with cash and loan guarantees, the European Commission limited aid. Swiss air and Sabena, the national carriers of Switzerland and Belgium respectively, went bankrupt that October.
     The big winners of the shakeout were low-fare airlines, though the established network carriers slimmed down and began fighting back. But an industry-wide recovery that started in America in January 2002 ended by the early summer. US Airways and United Airlines declared bankruptcy before the year’s end.
     In early 2003 more problems were brought forth on the airlines by the Iraq war and the spread of SARS ( Severe Acute Respiratory Syndrome), which caused a slowdown in corporate travel.
     What can the big airlines do? Most have pursued marketing alliances ( though these may not help). In October 2003 two European airlines, KLM and Air France, announced they were hooking up. EU-US talks on liberalizing transatlantic flights, which could reshape the industry, got underway that same year. Despite rising travel numbers -- airlines, especially big American ones, remained in deep trouble in early 2004.