The Challenge of Intervention to Monetarily Support or Not Support the National Airline Carriers: A Case of the Airline Industry in Eastern Europe

Citation data:

Marketing, Management & International Business: Contemporary Issues & Research in Selected Countries, Page: 241-253

Publication Year:
2013
Usage 470
Downloads 418
Abstract Views 52
Repository URL:
https://commons.erau.edu/db-management/14
Author(s):
Rhoades, Dawna L; Curtis, Tamilla
Tags:
intervention; monetary support; airline industry; air carriers; Eastern Europe; Aviation; Business Administration, Management, and Operations; International Business; Marketing
book chapter description
The airline industry has been considered a special case in national and international business virtually since its beginning. Because of this status, national governments have repeatedly intervened to support national carriers in order to prevent bankruptcy and failure. The nations of Eastern Europe are no exception to this rule and are currently considering additional intervention to support their carriers. This paper explores the rationale for intervention, particularly the suggested economic impact, using traffic and financial information from the Flightglobal database. The conclusion is that the case for intervention is weak at best and that the results may not justify the expense.