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

Abstract

Airline safety is an important factor that customers seek and expect from air carriers. Safety performance, related to the rate of accidents and incidents, 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 article will consider how safety as a key performance indicator may reflect the effectiveness of the organization’s operational policies and processes. The paper proposes that low-cost carriers (LCCs) demonstrate a better safety performance record than mainline and regional carriers. The results of this exploratory study of five years of safety and on-time performance data involving carriers in the United States suggest that the low-cost 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 low-cost carriers and a higher performance standard is presented.