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Published on: April 4, 2025
Terrorism risks and cost-benefit analysis of aviation security
1Centre for Infrastructure Performance and Reliability, The University of Newcastle, New South Wales 2308, Australia. mark.stewart@newcastle.edu.au
Summary
Installed physical secondary barriers (IPSB) and the Federal Flight Deck Officer (FFDO) program are cost-effective security measures against terrorist attacks. Reallocating funds from the Federal Air Marshal Service (FAMS) could save millions annually.
Area of Science:
- Aviation Security Policy
- Cost-Benefit Analysis
- Counter-Terrorism Strategies
Background:
- Post-9/11 aviation security measures in the U.S. require continuous evaluation for cost-effectiveness.
- Existing security layers include installed physical secondary barriers (IPSB), Federal Air Marshal Service (FAMS), and the Federal Flight Deck Officer (FFDO) Program.
- Assessing the economic viability of these measures is crucial for optimizing national security investments.
Purpose of the Study:
- To evaluate the cost-benefit of three key U.S. aviation security measures: IPSB, FAMS, and FFDO.
- To determine the minimum attack probability for each measure to be cost-effective.
- To analyze an alternative policy involving budget adjustments for FFDO and FAMS, and widespread IPSB implementation.
Main Methods:
- A comprehensive cost-benefit analysis was conducted, considering risk reduction, losses, and security costs.
- Break-even analysis calculated the minimum required annual probability of a successful attack for each measure's benefits to equal its costs.
- An alternate policy scenario was modeled with adjusted budgets for FFDO and FAMS, and universal IPSB installation.
Main Results:
- Installed physical secondary barriers (IPSB) are cost-effective if the annual attack probability exceeds 0.5% (one attack every 200 years).
- The Federal Flight Deck Officer (FFDO) program is cost-effective if the annual attack probability exceeds 2%.
- The Federal Air Marshal Service (FAMS) requires more than two successful attacks annually to be cost-effective.
Conclusions:
- IPSB and FFDO programs represent cost-effective security investments for preventing direct 9/11-style attacks.
- A revised policy prioritizing IPSB and FFDO, while reducing FAMS funding, could yield significant cost savings with negligible security impact.
- Optimizing aviation security spending through strategic reallocation can enhance overall safety and economic efficiency.
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