Issues in Network Development by National Airlines : Case of Ukraine

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 no single carrier 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