Radiation Induced Cancers, a Potential Liability of U.S. Air Carriers

• In Event: Financial Accounting and Reporting 2

Abstract

Aircrew, particularly U.S. aircrew, are recognized as the highest exposed radiation workers in the world. U.S. aircrew are also known to have excess cancers, due in part to their radiation exposure. This study seeks to address the potential liability of U.S. Air Carriers for radiation induced cancers using the precedent from prior exposed populations (e.g., downwinders from the Nevada Test Site, atomic veterans, and Department of Energy workers) to establish estimates of compensation. These programs have created an important precedent for addressing compensation for cancer from radiation exposure, which unlike typical workman’s compensation illnesses, can only be linked to the causes in a statistical manner. The proper accounting under U.S. Generally Accepted Accounting Principles (GAAP) is discussed and the potential financial and accounting implications to the four major U.S. Air Carriers are presented. While the annual recurring cost to airlines may be immaterial to the major carriers, the initial expense associated with these potential lawsuits could significantly impact their financial statements due to the backlog of retirees.

Author

• Sarah Shonka McCoy, University of New Mexico