Browse Publications Technical Papers 2000-01-2124
2000-04-11

Safety — An Essential Ingredient for Profitability, Managing Safety and Profitability in Airline Operations 2000-01-2124

Accidents and serious incidents are major cost factors in companies that have high consequence operations. Aviation, though having a very favorable safety level, still faces huge liabilities when accidents or serious incidents occur.
This paper will argue that safety should be regarded by management as a core production value, just as other products of the company are. Examples will be drawn from the worldwide industry that show the value of low accident operation. The FSF’s ICARUS committee’s work will also be described that presents persuasive arguments for establishing aviation company cultures that place high value on accident avoidance and reduction of risk. Returns in passenger confidence and respect for the air company that translate into ridership are only part of the profit picture. Reductions of employee injuries and fatalities, reduced damage to aircraft during ground operations have heavy positive leverage on the company’s profitability. Investments by management in strategies that focus on maintaining highest possible safety levels will be repaid manyfold by the costs saved in avoidance of injuries and accidents.
Discussion will be presented that shows how a company can reduce risk through effective quality assurance programs that embrace not only the maintenance and engineering operations but also the flight operations phase.
The paper concludes that safe operations makes good business sense as well as contributing to the well being of employees, passengers and other clients of the air company.

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