Financial structure instability as failure symptom in the aviation industry - The Jet Airways bankruptcy case

The global aviation industry has been changing very rapidly in latest years, most of all because of evolving technology and consequent commercial models. These changes have impacted also the Indian sector, forcing Indian airlines companies to face new and unpredictable challenges, not always successfully. The bankruptcy of Jet Airways is a relevant example in this respect. In the following study, the financial structure of the corporation has been an object of a particular investigation, aiming at understanding if financial turbulence for an airlines company could constitute an antecedent for predicting risk of bankruptcy. A combined evaluation using Altman’s Z score, Piotroski’s F score, and Beneish’s M score has allowed to highlight that these equations can reveal financial instability as bankruptcy predictor, and potential earnings manipulation as financial malpractice in the governance and management.