Photoelectric smoke detectors serve as the primary fire detection systems within civil aviation cargo compartments, yet they frequently experience high rates of false alarms, with FAA data indicating that up to 99% of alarms are erroneous. This research introduces an advanced reliability model designed to evaluate how smoke detector failures affect aircraft operations. The study categorizes failures into minor, major, and replacement-required scenarios and employs the regenerative point technique to analyze essential performance metrics, including transition probabilities and mean time to system failure (MTSF). Furthermore, a comprehensive cost-benefit analysis explores the economic consequences associated with varying levels of system reliability. Results demonstrate that improved reliability significantly reduces flight schedule disruptions, directly enhancing both operational safety and profitability. The research specifically examines a configuration involving two smoke detectors in the forward cargo compartment and four in the aft compartment, with alerts delivered through cargo smoke panel indicators and Master Warning chimes. The findings underline the critical importance of regular maintenance and calibration to decrease false alarms triggered by mechanical faults or environmental influences, thus optimizing system performance and enhancing aviation safety.