This paper investigates the wealth impact on aircraft manufacturers of crashes involving their aircraft. The author attempts to separate out the regulatory, tort law, and endogenous market components of these costs using stock market data. The results indicate that on average the manufacturer...

At present, the domestic airline industry is in turmoil. Industry watchers have witnessed the demise of two major airlines (Braniff and Continental) followed by their subsequent rebirth, and the default of Air Florida. United has purchased the Pacific routes of Pan Am. TWA is buying Ozark, its...