FINANCIAL INFLUENCES ON AIRLINE SAFETY. CHAPTER 8 OF TRANSPORTATION SAFETY IN AN AGE OF DEREGULATION

The author investigates one channel through which deregulation of the airline industry may affect safety - the relationship between aircraft accident rates and the financial performance of airlines. She presents economic models of airlines' quality or safety decisions; analyzes aggregate accident data, from 1954-1986, for U.S. certified scheduled air carriers; uses data on 26 air carriers to investigate the determinants of accident rates for individual air carriers; and relates a statistical model for the accident rates' determinants.