AIR TRANSPORT SAFETY: AN EMPIRICAL MODEL

This paper discusses whether or not airlines that are less profitable or cheaper pose greater accident risks. The data examined came from 31 airlines operating during the years 1970-1995. Accident data was collected from The World Directory of Airliner Crashes. Preliminary results suggest that the less profitable airlines are also riskier, as measured by the number of fatalities occurring for an airline. However, airline ticket prices do not seem to have a relationship to airline safety.