1. APPENDIX Table A1: List of aviation accidents during the sample period

1. APPENDIX

Table A1: List of aviation accidents during the sample period

# Date Time T2 T3 Aircraft Registration Airline Company fat1 _gr2 _CF3 1 17-07-96 20:31 18-07-96 1-08-96 Boeing 747 N93119 TWA TWA 230

2 19-11-96 17:01 20-11-96 4-12-96 Beech 1900 N87GL United Express Great lakes aviation 12 3 9-01-97 15:54 9-01-97 24-01-97 Embraer 120 N265CA Comair Comair 29

4 21-07-97 13:08 21-07-97 4-08-97 Learjet 31 9V-ATD Singapore Airlines Singapore Airlines 2 YES4 5 6-08-97 1:42 6-08-97 20-08-97 Boeing 747 HL7468 Korean Air Korean Air 228

6 19-12-97 16:13 22-12-97 5-01-98 Boeing 737-300 9V-TRF Silkair Singapore Airlines 104 7 28-12-97 23:10 29-12-97 12-01-98 Boeing 747 N4723U United United Air Lines 1 8 16-02-98 20:09 17-02-98 3-03-98 Airbus A.300 B-1814 China Airlines China Airlines 196 7 9 2-09-98 21:31 3-09-98 17-09-98 MD-11 HB-IWF Swissair SairGroup 229 10 11-12-98 19:10 14-12-98 28-12-98 Airbus A.310 HS-TIA Thai Airways Thai Airways 101 11 7-04-99 0:45 7-04-99 21-04-99 Boeing 737-400 TC-JEP THY THY 6 12 15-04-99 16:04 16-04-99 30-04-99 MD-11 HL7373 Korean Air Korean Air 3 5 13 1-06-99 23:51 2-06-99 16-06-99 MD-80 N215AA American Airlines American Airlines 11 14 22-08-99 18:43 23-08-99 6-09-99 MD-11 B-150 China Airlines China Airlines 3

15 22-12-99 18:38 23-12-99 6-01-00 Boeing 747 HL7451 Korean Air Korean Air 4 YES5 16 10-01-00 17:56 11-01-00 25-01-00 Saab 340 HB-AKK Crossair SairGroup 10

17 30-01-00 21:09 31-01-00 14-02-00 Airbus A.310 5Y-BEN Kenya Airways Kenya Airways 169 18 31-01-00 16:20 31-01-00 14-02-00 MD-80 N963AS Alaska Airlines Alaska Airlines 88 19 8-07-00 19:50 10-07-00 24-07-00 Jetstream 31 N912FJ Aerocaribe Cintra Group 19 20 25-07-00 16:44 25-07-00 8-08-00 Concorde F-BTSC Air France Air France 109 4 21 31-10-00 23:18 1-11-00 15-11-01 Boeing 747 9V-SPK Singapore Airlines Singapore Airlines 83 22 3-03-01 14:48 5-03-01 19-03-01 Boeing 737-400 HS-TDC Thai Airways Thai Airways 1

23 5-09-01 17:14 6-09-01 20-09-01 Boeing 777 G-VIIK British Airways British Airways 0 1 YES6

1 8-10-01 8:10 8-10-01 22-10-01 MD-80 SE-DMA SAS SAS 110 4 2 12-11-01 9:16 12-11-01 26-11-01 Airbus A.300 N14053 American Airlines American Airlines 260 5 3 24-11-01 22:06 26-11-01 10-12-01 BAe-146 HB-IXM Crossair SairGroup 24 4 25-05-02 15:30 27-05-02 10-06-02 Boeing 747 B-18255 China Airlines China Airlines 225 5 8-01-03 8:49 8-01-03 22-01-03 Beech 1900 N233YV US Airways Express Mesa Air group 21 6 8-01-03 20:19 9-01-03 23-01-03 BAe-146 TC-THG THY THY 75 7 22-06-03 23:55 23-06-03 7-07-03 Canadair Regional F-GRJS Brit Air Air France-KLM 1 8 14-10-04 22:15 15-10-04 29-10-04 Canadair Regional N8396A Pinnacle Airlines Pinnacle Airlines 2 9 14-08-05 12:03 15-8-05 29-08-05 Boeing 737-31S 5D-DBY Helios Airways Libra Holidays Group 121 10 8-12-05 19:14 9-12-05 23-12-05 Boeing 737-700 N471WN Southwest Airlines Southwest Airlines 0 1 11 27-08-06 6:07 28-08-06 11-09-06 Canadair Regional N431CA Delta Connection Delta Airlines 49 12 29-09-06 16:57 2-10-96 16-10-06 Boeing 737-800 PR-GTD Gol GoL 154 13 25-01-07 11:24 25-01-07 8-02-07 Fokker 100 F-GMPG Régional Air France-KLM 0 1 14 5-05-07 0:06 7-05-07 21-05-07 Boeing 737-800 5Y-KYA Kenya Airways Kenya Airways 114

1

_{The number of fatalities on board the aircraft due to the accident.}

2

_{The number of ground fatalities due to the accident.}

3

_{Confounding effects are reported in this column}

4

_{The accident in question was a training aircraft of Singapore Airlines with an instructor and student that}

crashed. Since this accident was not the result of the commercial operation of an aircraft and that the news of this

accident did not reach the market this accident is excluded from the sample.

5

_{Korean Air had an accident 8 months earlier that intervenes with the estimation window of this accident, it is}

therefore excluded from the sample.

6

Table A2: Abnormal returns for all aviation accidents

0 1 2 3 4 5 6 7 8 9 10

Table A3: (Cumulative) abnormal returns for all accidents

0 1 2 3 4 5 6 7 8 9 10

Table A4: Parameter estimates for world index

World DS local rate World DS local rate World DS local rate TWA α = 0.01 Kenya Airways 1 α = 0.00 Pinnacle Airlines α = 0.00 β = 1.65 β = 0.09 β = 0.28 S = 0.05 S = 0.03 S = 0.02 R2 = 0.04 R2 = 0.00 R2 = 0.01

Great Lakes Aviation

α = 0.00 Alaska Airlines α = 0.00 Libra Holidays Group α = 0.00 β = 0.21 β = 1.52 β = -0.88 S = 0.06 S = 0.02 S = 0.04 R2 = 0.00 R2 = 0.33 R2 = 0.02 Comair α = 0.00 Cintra Group α = 0.00 Southwest Airlines α = 0.00 β = 1.20 β = 0.02 β = 0.66 S = 0.03 S = 0.03 S = 0.01 R2 = 0.05 R2 = 0.00 R2 = 0.06 Korean Air 1 α = 0.00 Air France α = 0.00 Delta Airlines α = 0.00 β = 0.04 β = 0.28 β = 0.26 S = 0.03 S = 0.02 S = 0.05 R2 = 0.00 R2 = 0.02 R2 = 0.00 Singapore Airlines 1 α = 0.00 Singapore Airlines 2 α = 0.00 GoL α = 0.00 β = 0.31 β = 0.85 β = 2.12 S = 0.02 S = 0.02 S = 0.03 R2 = 0.02 R2 = 0.12 R2 = 0.28 United Airlines 1 α = 0.00 Thai Airways 2 α = 0.00 Air France-KLM 2 α = 0.00 β = 1.60 β = -0.02 β = 0.96 S = 0.02 S = 0.02 S = 0.01 R2 = 0.41 R2 = 0.00 R2 = 0.32 China Airlines 1 α = 0.00 British Airways α = 0.00 Kenya Airways 2 α = 0.00 β = 0.00 β = 1.39 β = -0.10 S = 0.03 S = 0.02 S = 0.02 R2 = 0.00 R2 = 0.28 R2 = 0.00 Sair Group 1 α = 0.00 SAS α = 0.00 TAM α = 0.00 β = 0.36 β = 0.57 β = 0.72 S = 0.02 S = 0.02 S = 0.02 R2 = 0.08 R2 = 0.08 R2 = 0.07 Thai Airways 1 α = 0.00 American Airlines 2 α = 0.00 β = -0.24 β = 2.10 S = 0.05 S = 0.02 R2 = 0.01 R2 = 0.65 THY 1 α = 0.00 Sair Group 3 α = -0.01 β = 0.96 β = 1.17 S = 0.04 S = 0.08 R2 = 0.10 R2 = 0.06 Korean Air 2 α = 0.01 China Airlines 3 α = 0.00 β = 0.26 β = 0.11 S = 0.05 S = 0.03 R2 = 0.01 R2 = 0.00 American Airlines 1 α = 0.00

Mesa Air Group