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  • Writer's pictureDoug Howarth

Improving Value By Adding Safety

Everything counts in large amounts – Depeche Mode It’s hard to be flawless in human endeavors. You can bowl a perfect game, throw one in baseball, or get the equivalent in the NFL if your quarterback rating hits 158.3. Athletes who reach high performance levels get rewarded handsomely. Hypernomics finds there is money in approaching perfection in transportation, too. In 2019, the National Safety Council found the lifetime odds of dying was 1 in 543 as a pedestrian and 1 in 107 in a car crash. But the NSC found the chances of dying in a plane crash too low to calculate. The Tupolev Tu-204 series (A) has an excellent safety record. It holds more passengers than the Boeing 737 NextGen line (B) and goes faster. But it sells for less than NextGen and has made far fewer sales. While Boeing’s huge network figures into these results, so, too, does its outstanding safety record. As we see in C, the B737-800 has greater than an order of magnitude reduction in hull losses than the Tu-204. It’s better than its predecessor, the B737-500. It took Boeing time and effort to get that safe. Now they are reaping the rewards. You may not attain perfection, but it pays to try. #hypernomics #innovation #businessintelligence #safety #sales
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