An Update on Airline Financial Condition and Insolvency Prospects Using the Altman Z" Score Model

Authors

  • Richard D. Gritta
  • Bahram Adrangi
  • Brian Adams
  • Nina Tatyanina

DOI:

https://doi.org/10.5399/osu/jtrf.47.2.1726

Abstract

Stricken by the events of Sept. 11, 2001, and by increases in fuel prices, a key cost which has spiked upward as the price of oil has risen to more than $130 per barrel, the airlines find themselves, once again, in fragile financial shape. The purpose of this article is to measure the financial condition of the industry, given this situation, using a popular financial stress model, the Altman Model.

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Published

2011-11-21

Issue

Section

Industry Issue Paper