Stamolampros, P orcid.org/0000-0001-8143-7244 (2022) Economic pressures on airlines’ safety performance. Safety Science, 148. 105626. ISSN 0925-7535
Abstract
We investigate if general economic conditions influence aviation safety across the whole sector. Specifically, the study explores the relationship among aviation accidents and incidents for Part 121 US commercial airlines with fuel prices, stock market volatility, industrial production growth, and treasury bill rates. Our findings suggest that most of the variables under consideration exhibit a strong association with airline safety. Importantly, we examine two plausible channels that may explain these results; managerial decisions and the effect on “human factor”. Analysis of airline financial data, health, and safety violations, along with airline employee satisfaction levels, suggests that it is more likely that the economy influences aviation safety through managerial decisions. This study confirms theoretical predictions about reductions on firms’ quality standards in periods of financial stress and liquidity constraints. The findings of the study have important implications for regulators and other stakeholders.
Metadata
Item Type: | Article |
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Authors/Creators: |
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Copyright, Publisher and Additional Information: | © 2021 Elsevier Ltd. This is an author produced version of an article published in Safety Science. Uploaded in accordance with the publisher's self-archiving policy. |
Keywords: | Airline safety, Fuel prices, Market concentration, Financial stress |
Dates: |
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Institution: | The University of Leeds |
Academic Units: | The University of Leeds > Faculty of Business (Leeds) > Management Division (LUBS) (Leeds) > Management Division Decision Research (LUBS) |
Depositing User: | Symplectic Publications |
Date Deposited: | 03 Dec 2021 15:20 |
Last Modified: | 04 Jul 2023 00:13 |
Status: | Published |
Publisher: | Elsevier |
Identification Number: | 10.1016/j.ssci.2021.105626 |
Open Archives Initiative ID (OAI ID): | oai:eprints.whiterose.ac.uk:181092 |