FEAR OF FLYING? ECONOMIC ANALYSES OF AIRLINE SAFETY. IN: AIR TRANSPORT

This paper summarizes economic research on a broad range of questions relating to airline safety, particularly safety following the deregulation of the late 1970s. Four questions are considered in this paper. First, has airline safety declined since deregulation? Second, how has airline deregulation affected the safety of travelers overall, especially with consideration of indirect channels such as the substitution of commuter airlines for jet service and the replacement of highway driving by air travel? Third, what accounts for differences in safety performance across carriers? Fourth, what are the market penalties for airline accidents? Airline safety analysis appears to get a disproportionate share of attention, relative to more significant public risks. This intense public, media and academic interest may provide the ultimate explanation for the continuing improvements in aviation safety.