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Issues in Network Development by National Airlines: The Case of Ukraine

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  • Volodymyr Bilotkach

Abstract

This paper uses example of Ukraine to explore the issue of national airlines’ strategies on the global deregulated airline market. Ukraine’s case is unusual in a sense that the country currently has two main national carriers, which do not directly compete on any international route. The carriers’ success on the global deregulated market requires a well-established and structured network, which none of the two carriers can offer at this time. We suggest that an alliance between the two carriers is a preferable option to a merger. The analysis is extended to suggest alliances as a possible policy option on the deregulated airline markets.

Suggested Citation

  • Volodymyr Bilotkach, 2007. "Issues in Network Development by National Airlines: The Case of Ukraine," Rivista di Politica Economica, SIPI Spa, vol. 97(1), pages 61-80, January-F.
    • Handle: RePEc:rpo:ripoec:v:97:y:2007:i:1:p:61-80
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    References listed on IDEAS

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    1. Brueckner, Jan K., 2001. "The economics of international codesharing: an analysis of airline alliances," International Journal of Industrial Organization, Elsevier, vol. 19(10), pages 1475-1498, December.
    2. Volodymyr Bilotkach, 2005. "Price Competition between International Airline Alliances," Journal of Transport Economics and Policy, University of Bath, vol. 39(2), pages 167-190, May.
    3. Severin Borenstein, 1989. "Hubs and High Fares: Dominance and Market Power in the U.S. Airline Industry," RAND Journal of Economics, The RAND Corporation, vol. 20(3), pages 344-365, Autumn.
    4. Brueckner, Jan K & Whalen, W Tom, 2000. "The Price Effects of International Airline Alliances," Journal of Law and Economics, University of Chicago Press, vol. 43(2), pages 503-545, October.
    5. Brueckner, Jan K & Spiller, Pablo T, 1994. "Economies of Traffic Density in the Deregulated Airline Industry," Journal of Law and Economics, University of Chicago Press, vol. 37(2), pages 379-415, October.
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    More about this item

    JEL classification:

    • L20 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - General
    • L93 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Air Transportation

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