Safety Performance Comparisons in Scheduled U.S. Carrier Operations: 2000-2004

Abstract

Airline safety performance, related accident and incident rates, is frequently associated with the effectiveness of a carrier's internal processes. On-time performance, lost luggage, and customer complaints are, among others, publicly reported performance indicators that may differentiate one carrier from another. This paper considers how safety as a key performance indicator may reflect the effectiveness of the organization's operational policies and processes. It is proposed that low-cost carriers (LCC) demonstrate a better safety performance record than mainline and regional carriers. Results of this exploratory study of 5 years of safety and on-time performance data involving U.S. carriers suggests that the LCC carrier segment is less prone to accidents and incidents and offers the best performance. As a result, the low-cost business model may improve an airline's safety and operational performance since it more efficiently transforms organizational inputs into safety performance outcomes. A model explaining the relationship between key characteristics of LCCs and a higher performance standard is presented.