The recent ‘miraculous’ ditch rescue in the Atlantic has prompted a review of UK pilot training protocols. While lives saved are always welcome, the City must ask: at what cost? Every regulatory knee-jerk response adds a layer of cost to an already overburdened aviation sector.
The market understands risk; it prices it. But government intervention often creates a moral hazard, where the very safety nets intended to protect encourage recklessness. The review must focus on cost-benefit analysis, not emotional reaction.
Gilt yields are sensitive to any hint of increased public spending, and this review could add inflationary pressure if not handled with fiscal discipline. Let the market drive safety improvements, not bureaucratic overreach.
