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Old 19th August 2005 | 04:24
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Tacan400
 
Joined: Jul 2005
Posts: 139
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From: Sydney
I never claimed my financial model was perfect but was just illustrating how much accidents really cost in economic terms, hey but I'm not an economist!

Assuming that this terrible accident was not caused by foul play but some kind of aircraft design deficiency or malfunction ( and we'll just have to see what the investigation comes up with ), the regulators and the manufacturer will be looking at the PREVENTION COST =(cost of the various suggested 'remedies' times the number of aircraft to be equipped/redesigned times the effectiveness of the remedy) versus the potential BENEFITS (the likelihood of the accident occurring times the magnitude of the consequences i.e. the risk). Then throw in a liberal dose of politics to protect the airline industry and HEY PRESTO you get a government DECISION to regulate the industry. And it will cost a lot of money for sure.

My point is that passenger airline accidents are hugely costly in human and economic terms and spending well-targetted money to prevent them is therefore money well spent.
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