Nancy L. Rose Financial Influences on Airline Safety

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Whilst the greatest effort has been made to ensure the quality of this text, due to the historical nature of this content, in some rare cases there may be minor issues with legibility. Despite substantial media attention, however, there has been relatively little scientific research on possible links between deregulation and safety conditions in the airline industry. Graham and Bowes (1979) investigate the link between firms' financial conditions and their accident rates, maintenance expenditures, and servie complaints; Golbe 1986) analyzes the relation between accidents and profitability. Both studies use pre-deregulation data; neither finds much support for the argument that reduced profitability lowers airlines' safety performance. Advanced Technology (1986) analyzes bivariate correlations between financial measures and carriers'