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This paper investigates whether financial factors, which are presumed to influence an airline's maintenance, purchasing, and training policies, are associated with the air carrier's safety performance.

In this paper, we employ a series of univariate and multivariate tests (OLS and Poisson regressions) to examine whether an airline's financial well-being as well as a country's legal and economic environment affect the airline's accident rate. Our study is the first to employ an international sample that covers 110 airlines in 26 countries over the period 1990–2009.

We document an inverse relationship between the profitability of air carriers and their accident propensity. Other financial variables such as liquidity, asset utilization, and financial leverage also appear to affect an airline's safety record, although these findings do not reach significance in all models. Flight equipment maintenance and overhaul expenditures are negatively related to accident rates. In addition, our results show that country-level variables related to the legal and economic environment have a significant effect on airline safety. Specifically, airlines in countries with strong law enforcement, more stringent regulatory systems, and better economic performance have superior safety performance. A series of robustness tests confirms our results.

The unique contributions of the study are (1) that it is the first to explore the drivers of safety performance in a cross-country context and (2) that it introduces a novel index of capacity when computing accident rates. By using data from 110 airlines in 26 countries, the study does not only provide insights into the firm-level but also the country-level determinants of an airline’s safety performance. The results of this research should be of interest both to academics and to regulators who develop, oversee, and implement policies targeted at improving aviation safety on a national and supranational level.

This study investigates the impact of financial health and corporate governance on aviation safety, aiming to fill a critical gap in existing research. The purpose of this study is to identify how these factors influence the safety records of airlines and provide insights for regulators, airlines and stakeholders to enhance aviation safety.

Using a comprehensive international sample spanning 1950–2009 and later, this empirical analysis draws on diverse databases. The authors examine 372 airlines across 70 countries from 1990 to 2016. The research uses statistical models to analyze the relationship between financial indicators, corporate governance quality and aviation safety, addressing limitations of prior single-country studies.

The findings reveal a significant inverse relationship between financial health and accident propensity, with profitable airlines exhibiting lower accident rates. Additionally, airlines with higher corporate governance quality, characterized by qualified directors and stable leadership, experience fewer accidents. The study identifies key factors such as pilot errors, mechanical failures and adverse weather, contributing to approximately 75% of accidents, emphasizing the importance of organizational control.

This research has crucial implications for aviation safety policies and practices. Regulators and international organizations, such as International Civil Aviation Organization and International Air Transport Association, should allocate resources to supervise financially vulnerable airlines and those with lower governance quality. Governments might consider incentivizing safety practices through tax deductibility for relevant expenses. Shareholders are encouraged to prioritize qualified, younger and less busy directors, recognizing their impact on safety performance.

This study contributes to existing literature by addressing methodological biases and offering a comprehensive international perspective. The identification of a link between financial health, corporate governance and accident rates in the aviation industry provides valuable insights. The research informs policymakers, regulators and industry stakeholders on effective strategies to improve safety by considering financial and governance factors under their control.

The purpose of this paper is to contribute to the literature investigating disclosure reactions to legitimacy threats by analyzing the corporate social responsibility (CSR) disclosure reactions to catastrophic accidents suffered by major airlines.

The authors use content analysis to examine changes in annual report disclosure in response to four separate airline disasters. The authors adopt two classification schemes and two measurement approaches to explore these changes.

The authors find that for three events the organizations appear to have responded with considerable increases in CSR disclosure that are consistent with attempts of legitimation. For one of the events examined, the authors find no disclosure response and suggest that this could be due to the company’s unwillingness to accept responsibility.

The study’s focus on major airlines that have suffered an accident with available annual reports in English meant that other companies had to be excluded from the analysis.

The findings demonstrate the use of the annual report as a legitimation tool and further highlight the need for greater transparency and comparability across publications.

The paper adds to the scarce literature examining corporate disclosure reactions following threats to their social legitimacy.

The basis of safe flight is the management of risks. This paper aims to present a new process-based risk assessment model, with an approach to calculate the risk score.

Since thousands of minor changes occur within ground operations, it is difficult to calculate how much risk these variations will pose. This paper proposes a risk assessment model fed from analysis of ground operation processes using functional resonance analysis method (FRAM) and fuzzy logic.

FRAM is used to detect variations in ground operation. Using the FRAM analysis, it has been revealed how much risk the process steps described in the procedures involve. The risk score was calculated by combining the probability value obtained from the airline’s database and the severity assessment of the expert group in fuzzy logic. The risk level can be monitored dynamically with the transfer of events in the airline’s database to the process-based risk assessment model.

FRAM analysis, which is used to detect function variations before undesirable risk occurs, has brought a proactive approach to risk assessment. The process-based risk assessment model allows the creation of new safety parameter indicators to be followed to reduce the risk level of the function with a high-risk level. The proposed approach can be used for other operational areas in aviation as well.

With the ascendance of information technology, particularly through the internet, external information sources and their impacts can be readily transferred to influence the performance of financial markets within a short period of time. The purpose of this paper is to investigate how incidents affect stock prices and volatility using vector error correction and autoregressive-generalized auto regressive conditional Heteroskedasticity models, respectively.

To characterize the investors’ responses to incidents, the authors introduce indices derived using search volumes from Google Trends and the Baidu Index.

The empirical results indicate that an outbreak of disasters can increase volatility temporarily, and exert significant negative effects on stock prices in a relatively long time. In addition, indices derived from different search engines show differentiation, with the Google Trends search index mainly representing international investors and appearing more significant and persistent.

This study contributes to the existing literature by incorporating open-source data to analyze how catastrophic events affect financial markets and effect persistence.

The purpose of this paper is to investigate the aircraft pushback operations to predict and manage human errors, particularly those associated with the complex team work of carrying out the pushback operation. This should improve air ramp operations reliability.

The study applied the human reliability assessment “Systematic Human Error Reduction and Prediction Approach” that involved a total of 60 semi-structured interviews with practicing experts. Past ramp accident reports were also reviewed to provide more in-depth insights to the problem.

Some of the key performance reliability-degrading errors identified relate to some frequent critical technical inabilities within the team of headset operator and tug driver, as well as the vulnerable intra-team communications. Several best practices were similarly identified.

Based on its findings, this study proposes a new technological concept that can help enhancing safety of aircraft pushback operations. This should enhance reliability of aircraft ground handling and improve aircraft availability. It also provided a generic methodological approach to improve safety-critical operations within high-risk industries.

This study responses to the increasing trend in ramp accidents worldwide.

The research conducted to date in this area is still quite limited compared to that of flight and aircraft maintenance safety. The relevant existing studies focus more on ramp safety holistically, and do not go into the details of how safety and reliability of a ramp operation can be improved. The current paper aims at filling this gap.

On the evening of December 29, 1972, Eastern Air 401 (EA401) was on a routine flight from New York to Miami. Despite EA401 flying one of the most advanced aircraft at the time (the Lockheed L-1011), it crashed in the Florida Everglades killing 101 of its 176 passengers. Drawing from various first-hand accounts (cockpit voice recorder) and secondary evidence (news reports and online sources) of the tragedy, this teaching case provides a detailed account of the key events that took place leading up to the accident. The case describes how the pilots on EA401 were confronted with a simple scenario, a landing gear bulb not working in the cockpit, and through the distraction that ensued made a series of errors. Through many of the quotes in the text, readers gain an understanding of the impressions and perceptions of the pilots, including how they felt about many of the critical decisions and incidents during the last minutes of the flight. The case concludes by highlighting the main findings of the NTSB report.

Depending on individual course objectives, this case can take two or one day to debrief. Specifically, if this case is used in an organizational behavior course, most of the case questions could be discussed in one day. However, if this case is used in a capstone HRM or group dynamics type course on teams and team training and performance, a second day could be used to develop documentation outlining training design or performance evaluation designs.

The purpose is to show how actors' relative power or parity is dynamically instanced in discrete speech behaviors that are exchanged throughout everyday organizational interaction.

Politeness theory, rooted in the dramaturgical theories of Erving Goffman, details a set of linguistic indices used to show regard for others' face. This conceptual paper draws on politeness theory to model the unfolding of power relations within face-to-face verbal interchange in organizations. The paper presents a number of propositions suggesting how power differentials (or parity) are reflected in a set of common speech behaviors used to defray threats to face throughout organizational interaction.

This article extends and applies politeness theory to organizations by exploring specific motives and linguistic outcomes of high and low power actors, describing the behavioral egalitarianism associated with organic organizations, and suggesting how the demand characteristics of face-to-face interaction create oligarchic tendencies that militate against the success of workplace participation. Politeness' role in the social construction of power, and in distortive processes within hierarchical communication, is also discussed.

This paper enables researchers to understand the specific linguistic features associated with power-related roles, and it shows how the social distribution of certain speech behaviors is a function of power and dependency relations.

The findings provide managers a fine-grained understanding of how power affects speech, and an understanding of how such speech patterns may stymie attempts to stimulate organizational empowerment and employee voice.

Prior scholarship has neglected this most important topic.

The purpose of this paper is to study of how a virtual technology burden was created that impacted the professional pilot college student and various colleges/universities that offer professional pilot degree programs. A cascading set of events began as a result of US congressional reaction to a tragic airline accident. The resulting legislation forced the Federal Aviation Administration to publish new rules for first officer qualifications that were unmindful of the recommendations of professional pilot groups for simulation-based training. Ultimately, this placed a financial burden on both the college/university training curriculum and on the professional pilot student.

This paper adopts a case study approach.

Because of US congressional over-reaction, a collegiate system which produced excellent first officer candidates who had below 500 flight hours and who had been demonstrated scientifically to be efficient, skilled, and safe, was upended. The flight hour requirements were increased fivefold with little regard to its impact on the pilot pool. Congressional legislation forced the FAA to create and publish new rules that were unmindful of the simulation recommendations of professional pilot groups and required virtual simulation technology new to the college/university training environment.

Traces the effect of government interference into a previously stable continuum of college-prepared airline pilots who are safe and effective.