APPLICATION OF INSOLVENCY PREDICTION MODELS IN BRAZILIAN AIR SECTOR COMPANIES

This study aims to analyze the insolvency forecasting model application results, between 2014 and 2018, in the main Brazilian airlines, which are Latam, Gol, Azul, and Avianca. To achieve the objective results, models from the literature are used (Elisabetsky, 1976; Matias, 1976; Kanitz, 1978; Altman, Baidya & Dias, 1979; Silva, 1982; Sanvicente & Minardi, 2000). The results show that the models identify insolvency in at least one of the periods in the companies, providing enough data to conclude that there are possible complications for the operational maintenance. Furthermore, Latam is the company that presents the least negative insolvency results, whereas Avianca's judicial reorganization at the end of 2018 may be evidence of its quite unfavorable found situation. We conclude, therefore, that the mentioned airlines may need to review their spending policies to improve their financial performance. Plus, we contribute to the accounting field by demonstrating that the insolvency forecasting model results may reflect the managers' decisions, serving as a tool for financial and strategic management.