Quantifying the risk of extreme aviation accidents

• The study focuses on a model involving extreme aviation accidents.
• The fitted generalized Pareto model has been compared with few other possible models.
• Bootstrap resampling technique provides accurate estimate of the uncertainty.
• The return level estimates have been tested for several threshold levels.

Air travel is considered a safe means of transportation. But when aviation accidents do occur they often result in fatalities. Fortunately, the most extreme accidents occur rarely. However, 2014 was the deadliest year in the past decade causing 111 plane crashes, and among them worst four crashes cause 298, 239, 162 and 116 deaths. In this study, we want to assess the risk of the catastrophic aviation accidents by studying historical aviation accidents. Applying a generalized Pareto model we predict the maximum fatalities from an aviation accident in future. The fitted model is compared with some of its competitive models. The uncertainty in the inferences are quantified using simulated aviation accident series, generated by bootstrap resampling and Monte Carlo simulations.