errelationships between these factors will be examined. Further, issues that transcend air transportation safety, yet hold the potential to substantially affect air transportation safety will also be examined in this chapter. These broader issues include federal governmental budget constraints which affect the capacity of the Federal Aviation Administration to provide adequate safety regulation and inspection, the effects of congestion, and the economic environment of the airline industry. Of particular interest among these three issues is the economic environment of the industry, as some observers think that economic pressures lead to a skirting of safety procedures.
The Value Line Investors Service estimated at mid year 1991 that approximately 16 percent "of the domestic airline industry's capacity is in the hands of bankrupt carriers" (Collins, 1991b, p. 252). The service went on to add that some analysts think that "close to half of the total" industry capacity is in the hands of "airlines in serious financial straits" (Collins, 1991b, p. 252).
Industry revenues have climbed steadily since 1987, from $25.4 billion in that year to an estimated $43.1 billion for all of 1991 (Collins, 1991b, p. 252). Even the load factor has risen from 58.1 percen
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