Accidents, Airline safety perceptions and consumer demand
Source of Publication
Journal of Economics and Finance
This paper assesses the impact of perceptions about the safety level of airlines on enplanement. Consumer perceptions are specified with a Poisson distribution that updates over time. Using two different empirical specifications via a pooled generalized least squares procedure with fixed effects; we find no statistical evidence of a correlation between the perceived level of safety and enplanement. However, under an alternative specification in which the severity levels of accidents are ranked, we find that safety perceptions about accidents with minor injuries have no statistically significant impact on enplanement, while perceptions about accidents with serious injuries and fatalities lead to cumulative decreases in enplanement.
Squalli, Jay and Saad, Mohsen, "Accidents, Airline safety perceptions and consumer demand" (2006). Scopus Indexed Articles. 2462.