Was the public or the private sector is best positioned to provide the security and baggage screening services? The suicide attacks on the World Trade Center and the Pentagon, and the plane crash outside Pittsburgh, marked 11 September 2001 as the date of the most serious terrorist attack and the terrible aviation incident in U.S. history, and led to a search for steps to prevent such a catastrophe in the future. The U.S. House of Representatives and the U.S. Senate passed two competing bills to address aviation se … Read more »

Was the public or the private sector is best positioned to provide the security and baggage screening services? The suicide attacks on the World Trade Center and the Pentagon, and the plane crash outside Pittsburgh, marked 11 September 2001 as the date of the most serious terrorist attack and the terrible aviation incident in U.S. history, and led to a search for steps to prevent such a catastrophe in the future. The U.S. House of Representatives and the U.S. Senate passed to address two competing bills for aviation security. The main difference between the bills was whether the screening function could continue to be provided by the private sector available or would be federalized – in fact, a reverse privatization of the service. Members of Congress had to consider issues of relationships between ownership, cost and quality, and, most importantly, support one of the two bills. Can be used to introduce questions of market and government failure and a public framework in which key issues are the availability of information, the ability to create incentives to develop, the importance of incentives and innovation, and the importance of attributes, not to forgive (eg, some dimensions of product quality).
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from
Alexander Dyck,
Mehmet Beceren
Source: Harvard Business School
28 pages.
Release Date: 03 Dec, 2001. Prod #: 702021-HCB-ENG
Aviation Security After 11 September: Public or Private? HBR case solution