Research Article
European Airlines’ TFP and the 2001 Attack: Towards Safety in a Risk Society
@INPROCEEDINGS{10.1007/978-3-642-02469-6_41, author={Panayotis Michaelides and Kostas Theologou and Angelos Vouldis}, title={European Airlines’ TFP and the 2001 Attack: Towards Safety in a Risk Society}, proceedings={Complex Sciences. First International Conference, Complex 2009, Shanghai, China, February 23-25, 2009, Revised Papers, Part 2}, proceedings_a={COMPLEX PART 2}, year={2012}, month={5}, keywords={European air transport TFP 2001 terrorist attack production function safety state}, doi={10.1007/978-3-642-02469-6_41} }- Panayotis Michaelides
Kostas Theologou
Angelos Vouldis
Year: 2012
European Airlines’ TFP and the 2001 Attack: Towards Safety in a Risk Society
COMPLEX PART 2
Springer
DOI: 10.1007/978-3-642-02469-6_41
Abstract
The purpose of this paper is to analyze in terms of security the complexity of European Air Transport after the 2001 terrorist attack, taking into account Total Factor Productivity (T.F.P.) change. Our approach regards European Air Transport as a complex system of airplanes, airports and control. The investigation is based on recent data from the Amadeus database for the largest European (EU-27) air transportation companies (1997-2005). The paper employs the Cobb-Douglas specification of the production function and, in this context, tests the hypothesis that the 2001 terrorist attack had a significant influence on the performance of the EU-27 air transportation companies. An interesting finding is that except for some companies that were negatively influenced, several others were positively influenced by the 2001 terrorist attack. The technological level of the companies included in our dataset remained almost unchanged. The empirical findings are discussed and some suggestions are made regarding policy issues.
