Journal of Economics and Finance

, Volume 30, Issue 3, pp 297–305 | Cite as

Accidents airline safety perceptions and consumer demand

  • Jay Squalli
  • Mohsen Saad


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.


Safety Level Minor Injury Airline Industry Accident Severity Fatal Accident 
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Copyright information

© Academy of Economics and Finance 2006

Authors and Affiliations

  • Jay Squalli
    • 1
  • Mohsen Saad
    • 2
  1. 1.Economic & Policy Research UnitZayed UniversityDubaiUAE
  2. 2.School of Business and ManagementAmerican University of SharjahSharjahUAE

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