This report documents a six-month study to develop a framework of societal costs of aircraft accidents in Australia for the purpose of assisting the Department of Aviation in relating costs and benefits in resource management decisions and for assisting the Bureau of Air Safety Investigation in the management of aviation safety promotion programs.
A detailed set of unit and total cost estimates for Australian 1980 is presented together with a literature review and recent work on approaches to valuing human life.
Two cost components, fatalities and aircraft hull damage/loss, account for about 96.5% of total annual costs of $31 million.
The costs of fatalities and injuries are based on the value of future lost work efforts and are to be considered as minimum values only. Intangible social costs such as pain and suffering are not expressed in dollar terms.
Also the use of average cost levels is limited because of the skewed distribution of most accident cost characteristics.
Further research directed towards refinement of the data and the conceptual and empirical bases of these estimates is recommended.
|Type:||Research and Analysis Report|
|Publication date:||21 February 1984|