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Analysis of Z Score for BSE Listed Airline Companies in India


Affiliations
1 Kaveri College of Arts, Science and Commerce Karve Road, Pune, India
 

The research paper focuses on calculating the Altman’s Z score for bankruptcy prediction for the airline industry in India. The modified Z Score for non manufacturing companies is used for analysis. 6 listed companies namely Jagson Airlines, TAAL enterprises, Global Vectra Helicorp, Spice Jet, Jet Airways, IndiGo Airways and the government owned Air India is considered for analysis. The Z scores for three preceeding years is calculated and analysed. The research paper states that the overall aviation sector is in financial distress . Only IndiGo airways is in the safe zone with a Z score of more than 2.9. All other companies are in financial distress.

Keywords

Altman’s Z Score, Airline Industry, BSE, Bankruptcy Prediction.
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  • Altman, E. (1968). Financial ratios, discriminant analysis and the prediction of corporate bankruptcy. The Journal of finance , 598-608.

  • Hsu, C. C. (2017). Applying Z-score Models in Aviation Finance Education: A Case Study of Some US Carriers. International Journal of Education and Social Science , 4 (3), 34.

  • IBEF. (2018, June). Indian Aviation Sector. Retrieved August 22, 2018, from Indian Brand Equity Foundation: https://www.ibef.org/industry/indian-aviation

  • India, G. o. (2016, October 17). What is Insolvency and Bankruptcy Code 2016? Retrieved August 22, 2018, from IndianEconomy.net : https://www.indianeconomy.net/splclassroom/what-is-insolvency-and-bankruptcy-code-2016/

  • Jaiswal, H. (2017, August). Bankruptcy Prediction Models. Retrieved from Slide Share: https://www.slideshare.net/himanshujaiswal/bankruptcy-prediction-models-2

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  • Analysis of Z Score for BSE Listed Airline Companies in India

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Authors

Sayee Kulkarni
Kaveri College of Arts, Science and Commerce Karve Road, Pune, India

Abstract


The research paper focuses on calculating the Altman’s Z score for bankruptcy prediction for the airline industry in India. The modified Z Score for non manufacturing companies is used for analysis. 6 listed companies namely Jagson Airlines, TAAL enterprises, Global Vectra Helicorp, Spice Jet, Jet Airways, IndiGo Airways and the government owned Air India is considered for analysis. The Z scores for three preceeding years is calculated and analysed. The research paper states that the overall aviation sector is in financial distress . Only IndiGo airways is in the safe zone with a Z score of more than 2.9. All other companies are in financial distress.

Keywords


Altman’s Z Score, Airline Industry, BSE, Bankruptcy Prediction.

References