Failure of Jet Airways : a Study on the Implication of Altman’s Modified Z Score vs. Fuzzy Logic Z Score

The acceptability of any distress prediction model depends on its capacity to depict financial sickness concerning a business perhaps a few years before they declare bankruptcy. Combination of financial ratios applied into the insolvency predictor model can bring about a general score that can be used to predict economic failure. The Indian aviation sector over the ongoing years has indicated an unpredictable challenge, latest being Jet Airways which needed to suspend its operations. Considering the Indian aviation industry as an emerging business sector the issue of Jet Airways isn't just about an organization it is additionally identified with the disappointment of corporate administration practices moreover. Two important models, for example, Altman Modified Z Score and Fuzzy Logic Z score were chosen dependent on extensive review to test the existence of financial failure of Jet Airways. Altman model is a generic one however the fuzzy logic rationale model is explicitly intended for the airline's business. The goal is to determine potentiality of these two models in the context of distress prediction. Ten years of monetary information has been utilized which are secondary in nature. The study adds to the existing literature to demonstrate the rationality between two studied models