AIRLINE DEREGULATION, SAFETY, AND PROFITABILITY IN THE U.S.

Bahram Adrangi · Garland Chow · Kambiz Raffiee

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Aviation Industry Analysis and Trends Air Traffic Management and Optimization Transport and Economic Policies

Abstract

The purpose of this is to analyze the most up-to-date air travel safety and financial variables in order to establish a relationship between air travel safety and profitability of airline firms before and after deregulation. Statistical tests are employed to detect correlation, co-movement, and causality between two measures of profitability and air travel safety. Furthermore, the effects of deregulation are examined by using both an event study methodology and regression models.

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