Air Travel and Risk Seeking Behavior

When considering taking a short-haul flight on Ryan Air or Southwest this morning, consider the business model's risks, specifically regarding keeping planes in the sky.

The risk lies when pilots have the rush to finish the mission. These pilots may break the rules or regulations while landing at an airfield to finish their shift or so their company can avoid the costs of the diversion. Sometimes, by taking these risks, these landings can result in incidents.

Maintenance is another risk. If the plane is constantly flying, when can maintenance be performed? When airlines face financial pressure to keep their aircraft flying, sometimes this can make a culture focus on something other than safety. When safety is not the focus of leadership or the maintenance crews, accidents can happen in the air and on the ground.

Companies making profits are more relaxed about financial pressure and making Wall Street's estimates. It's when losses are incurring, and to prevent more significant losses, companies tend to take on more considerable risk. Hopefully, these firms are not airlines because the result could be catastrophic when an airline adds risk.