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Industry Issue Paper: An Update on Airline Financial Condition and Insolvency Prospects Using the Altman Z” Score Model

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Listed:
  • Gritta, Richard D.
  • Adrangi, Bahram
  • Adams, Brian
  • Tatyanina, Nina

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.

Suggested Citation

  • Gritta, Richard D. & Adrangi, Bahram & Adams, Brian & Tatyanina, Nina, 2008. "Industry Issue Paper: An Update on Airline Financial Condition and Insolvency Prospects Using the Altman Z” Score Model," Journal of the Transportation Research Forum, Transportation Research Forum, vol. 47(2).
    • Handle: RePEc:ags:ndjtrf:206916
    DOI: 10.22004/ag.econ.206916
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    References listed on IDEAS

    as
    1. Edward I. Altman, 1968. "Financial Ratios, Discriminant Analysis And The Prediction Of Corporate Bankruptcy," Journal of Finance, American Finance Association, vol. 23(4), pages 589-609, September.
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