World economy and international economic relations

Institutional defects of international air transportation market

Economic Annals-XXI

Economic Annals-XXI: Volume 128, Issue 3-4(2), Pages: 20-23

Citation information:
Mykhalchenko, I. (2013). Institutional defects of international air transportation market. Economic Annals-XXI, 3-4(2), 20-23. https://ea21journal.world/index.php/ea-v128-06/

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Inna Mykhalchenko
Lecturer,
Department for International Economics,
National Aviation University, Kyiv, Ukraine
i.mykhalchenko@mail.ru

Institutional defects of international air transportation market

Abstract. The main institution of air transportation market is the international organization of civil aviation. However, many states-participants don’t use ICAO recommendations in practice, but some of them do not consider appendixes to Chicago Convention. That’s why the nature of ICAO rules is incomprehensible: are they recommendatory or obligatory? The research of ICAO regulation aspects gives concrete expression of ICAO functional advantages and disadvantages. It is set that there is no clear mechanism of compulsion ICAO rules and effective sanctions in case of their non-fulfillment by participants. Countries keep rules variously and in a different measure, which testify to ICAO functional fragmentation in the world. Therefore there is a requirement in rationalization of ICAO regulations, methods of development such regulations, improvement of management. It’s necessary to develop the external mechanism of compulsion. But before, it should be taken into account the possibilities of every country in providing this mechanism.

Keywords: International Air Transportation Market; ICAO; Rules; Mechanism of Compulsion; Fragmentation

JEL Classification: L51; L93; O17; O19

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Received 12.03.2013

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