AIRLINE DEREGULATION, SAFETY, AND PROFITABILITY IN THE U.S.

The purpose of this study is to analyze the most up-to-date air travel safety and financial variables in order to establish a relationship between air travel safety and profitability of airline firms before and after deregulation. Statistical tests are employed to detect correlation, co-movement, and causality between two measures of profitability and air travel safety. Furthermore, the effects of deregulation are examined by using both an "event study" methodology and regression models.