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Study Finds Link Between Airlines' Profitability And Accident Rates
Airlines' accident risk is highest when they are performing very close to their financial targets, according to a study by a professor in BYU’s Marriott School of Management. “The accident risk went down as they got further away from their financial goals in either direction,” said Peter Madsen, assistant professor of organizational leadership and strategy. “Speaking generally, airlines are safest when their financial performance is either much better or must worse than it has been in the… (www.physorg.com) Más...Sort type: [Top] [Newest]
There is too much pressure on airlines today. Too many airlines are chasing after a limited number of passengers and thus offer "low" fares.
With low fares that means that revenue might be impacted. How much money will be there be for regular maintenance? Pilot Training?
There is too much pressure to return a plane to service. It is very easy to rush and thus to overlook things.
With low fares that means that revenue might be impacted. How much money will be there be for regular maintenance? Pilot Training?
There is too much pressure to return a plane to service. It is very easy to rush and thus to overlook things.
I don't that any airline will deliberately cut back. I think that we are seeing is trying to stretch a low budget to cover more.
There is often pressures on getting planes back into service. This leads to rush jobs. It is easy to overlook things.
There is often pressures on getting planes back into service. This leads to rush jobs. It is easy to overlook things.
@Haleem Ahmed
What I could see would be activities directly involving any "significant" expenses such as delaying overhauls and some PM (preventative maintenance) work to the next fiscal year. This would have a direct link to safety. I doubt if SOPs would be changed are they are engrained in the airline's base culture.
What I could see would be activities directly involving any "significant" expenses such as delaying overhauls and some PM (preventative maintenance) work to the next fiscal year. This would have a direct link to safety. I doubt if SOPs would be changed are they are engrained in the airline's base culture.
Does this mean that when the airlines are experiencing financil difficulty, they deliberately cut back on safety features and standing operating procedures?
No, it says the opposite. When they're suffering financial difficulties they're safer than when they're hitting financial targets.
This study only addresses correlation, not causation.
This study only addresses correlation, not causation.
I agree in principal however as in life in general, a managed degree of stress is not bad. At a high level we are transitioning from the glorious years of the 50's and 60's when flying was a luxury and as such premium fares were in place based on supply and demand. Today, things are much changed with flying approaching the definition of "a bus / train at 32,000 feet". As with any technology / service air travel has commoditized (how much did you pay for your first cell or pc, how much do you pay now?) with the resulting downward pressure on pricing. It's a reality of any commoditized market. Company's find business models that are acceptable to market demands and their stock holders (ex: Southwest, Westjet) while others (often legacy airlines with much financial baggage (ie: pension funds, unions) have a struggle on their hands (ex: American, Air Canada). At a macro level the customer wins - financially speaking - and with a little bit of common sense / luck travels safely. Let's remember that it is still much safer to fly than drive so risks are very minimal. Spectacular when something goes wrong but still statistically much safer than driving.
Cheers