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In this work we discuss the fault avoidance and the fault tolerance approaches for increasing the reliability of aerospace and automotive systems. This includes: the basic definitions/concepts (reliability, maintainability, availability, redundancy, etc.), and characteristics (a priori analysis, a posteriori analysis, physical/hardware redundancy, analytical/software redundancy, etc.) of both approaches, their mathematical background and models (exponential, Weilbull, etc.), their basic theory, their methods and techniques (fault trees, dependence diagrams, Markov chains, etc.), some of their standards (SAE-ARP4761, AC 25.1309, etc.) and simulation environments (Cafta, etc.), and their applications to the reliability analysis and reliability improvement of aerospace and automotive vehicles. This is illustrated by some examples driven from the aerospace and automotive industries.