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LOSSES IN AIRLINE DEMAND AND VALUE FOLLOWING ACCIDENTS. CHAPTER 5 OF TRANSPORTATION SAFETY IN AN AGE OF DEREGULATION

Severin Borenstein, Martin B. Zimmerman

Abstract

This chapter examines the effect of airplane accidents on air traffic, and on the equity value of the airline involved in the accident(s). The major point discussed is the possible demand reduction for an airline subsequent to its involvement in an accident. This reduction in demand might occur as potential airline passengers respond to the accident.

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Available abstract

Key concepts: Deregulation, Business, Equity (law), Value (mathematics), Transport engineering, Engineering, Economics, Market economy