Companies that sustained a business loss

Introduction

The September 11th attacks which is commonly regarded as 9/11 was a series of coordinated suicide attacks by Al’Qaeda to the United States. 19 Al’Qaeda terrorists hijacked 4 commercial jetliners and intentionally crashed them on the twin towers of the World trade center killing all on board of the planes and also most of those who were in the building. The buildings collapsed after two hours of the attack and destroyed most of the buildings nearby as well as many other properties. The third plane was crushed into Pentagon in Virginia and the forth one was crushed in Shanksville in Pennsylvania though some of the crews and passengers had tried to regain the control of the plane.

There were no survivors in all airplanes. On the other hand, Hurricane Katrina was another deadliest moment in the history of the US. It caused flooding and deaths in the Southern of Florida. It was among the deadliest Atlantic hurricanes. Both 9/11 and Katrina caused big losses to Businesses in the US (Sorkin & Simon, 2001).

Synopsis of the companies that sustained loss in 9/11 and Katrina

Insurance and financial sectors were the most affected companies in the 9/11 and Katrina. The airline industry was hit be the effect of the 9/11 attacks on NY because they were main targets in committing the crime.

Delta Airlines Delta Airlines is one of the oldest airlines in United States. The company started as an aerial crop dusting company in 1920s. The company has moved through on to its current state of modern airline through acquiring other companies and expansion of its flight routs from a local airline to an international airline. The company has been serving North and South America, European countries, Middle East and Far East as well as other Asian countries, African and recently has started serving Australia becoming a global company serving all continents of the world.

Delta Airlines was much affected by the attack. Before the attack, its daily passengers averaged to about 300,000 and fell to 140,000 after the attack. This affected the company’s revenues though it had to pay all its employees and make flights as scheduled though most of the flights were below the capacity hence causing a serious loss to the company.  The company’s stock in the NYSE dropped considerably. This affected the company still and was hard for the company to fulfill its prospects (Stevenson & Stephen, 2001).

The company recovered from the loss:

a)    After redesigning its job and adaptable business continuity plan

b)    Campaigning to regain the trust from the customers on its enhanced security

c)    Canceling losing making routes

First Florida Insurers-Tampa First Florida Insurers-Tampa is a small private insurance Agents company that was established in 1987. The company is located in Tampa though its operations go beyond the county to other parts of the state. The company was incorporated in Florida and it’s revenues is estimated to be between $3 and $5 million. During the Hurricane Katrina havoc, the company suffered much loss because the company’s customer concentration is in Florida and this is where the Katrina hit most. Most of the company’s customers were affected and were claiming for compensation from the company which was beyond the company’s capability (Saint-Saens, 2010). The company nearly went bankrupt though it was rescued by:

a)    Proper continuity business plan

b)    Government effort in compensating and rescuing some of the affected customers.

List of references;

Saint-Saens, A. (2010), Ordeal at the Superdome. Escaping Katrina's Wrath, New Orleans: University Press of the South,

Sorkin, A. & Simon, R. (2001). "Reinsurance Companies Wait to Sort Out Cost of Damages". The New York Times.

Stevenson, W. & Stephen, L. (2001). "The Financial World Is Left Reeling by Attack". The New York Times.