Specifics of state policy for aviation industry development under conditions of international competition

International regime for air transportation historically formed as a pattern of bilateral agreements of two states to allow air traffic between them. This regime is not incorporated into WTO regulations, including General Agreement on Trade in Services. The EU created Common Aviation Area to provide the multilateral approach for international flight liberalization and fair competition. But the rapid expansion of carriers from Gulf countries and Turkey revealed that the international regulation is not effective in controlling state support of any forms, including subsidies, to aviation industry. As the liberalization process of the aviation industry continues, the issue of competition regulation regimes in different countries directly affects the perspective of the industry development. As the carriers are represented mostly by private business, the airports remain under state ownership or control. The relations among them define the competitive situation in the market for national carriers and the industry as the whole. One of the priority task for the state policy for aviation industry support is not direct subsidies or other form of funding, but infrastructural development. To maximize consumer value and increase the international competitiveness the nation shall develop a network of airports to serve the local and international traffic with the high efficiency. The biggest airports of the country accumulate the most of the traffic and experiences jams in the schedule. But Ukraine, like France, does not have an integrated national program for airport network development, contrary to Great Britain. As Ukraine joins Common Aviation Area of the EU, Ukrainian carriers will have access to European routes but will face competition on domestic routes from European companies. The issue of quality and efficiency of airport services both to carriers and passengers will define the possibility of the country to use the positive tendency of air traffic growth into sustainable development of the aviation industry. One of the main factor for airport competitiveness is integration into local and national transport system to give passengers options for convenient and cheap transportation from and to an airport. The Largest European airports develop investment projects for rail transportation to terminals form cities and environments.