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Abstract
Bankruptcy is an important topic in aviation finance education. However, aviation finance textbooks pay little attention to this topic. To address this gap, this article presents the application of the Z-score model developed by Altman. Selecting American Airlines and Southwest Airlines as case studies, we compared the empirical results to prove the efficiency of utilizing the Z-score model. Our findings suggest that the Z-score model is a reliable predictor of bankruptcy and should be included not only in aviation finance education at the undergraduate level but other areas of corporate finance as well.