Trends in the development of the air transportation market of Ukraine and influencing factors

Introduction. Given the current complex realities of conducting aviation business in a pandemic, the application of large-scale measures to combat its spread, as well as taking into account the development of liberalization of the air market, analysis of the effectiveness of Ukrainian airlines and identify current trends in Ukraine's air transportation market is an important task. The purpose of the paper is to investigate state of air transportation market in Ukraine in dynamics, to identify current trends and status of national airlines. Results. After the recession of 2014-2015, the volume of international passenger traffic by domestic airlines increased during the period 2016-2019. In 2020, it decreased by 76 %. At the same time, passenger traffic of Ukrainian airlines decreased by 65 % compared to 2019. Over the past five years, Ukraine’s air transportation market has evolved from highly concentrated to moderately concentrated. During this period, domestic airlines were more active in carrying out charter flights, while foreign airlines began to dominate in performing regular and scheduled flights with active participation of leading European low-cost airlines. Analysis of the market share of airlines with the largest volumes of passenger air traffic in air market of Ukraine showed that over past three years there has been a rapid decline in market shares of leading network airlines, both domestic and foreign. There was a rapid growth of market shares of foreign airlines – low-cost carriers. Conclusions. The changes identified in the air transportation market of Ukraine can be explained not only by the consequences of the pandemic, but also by the consequences of air transportation market liberalization. The signing of the Agreement on the Common Aviation Area in September 2021 between Ukraine and the EU will have a direct impact on the development of air transportation market of Ukraine, both in terms of supply and demand. Domestic airlines will be able to benefit from market liberalization only if they increase their competitiveness.

THE SUBSTITUTION FINANCING EFFECT OF SUPPLIERS’ TRADE CREDIT ON CUSTOMERS’ TRADE CREDIT IN CHINA

This study investigates the substitution financing effect of suppliers’ trade credit on customers’ trade-credit using Chinese listed firms from 2009 to 2018. Results verify the substitution financing effect of suppliers’ trade credit on customers’ trade credit, indicating that firms with higher suppliers’ trade credit have lower customers’ trade credit. Moreover, suppliers’ trade-credit substitutes customers’ trade credit by alleviating financing constraints. Customer concentration weakens the substitution financing relation. Finally, the substitution financing effect of customers’ trade credit on bank credit is more pronounced than that of suppliers’ trade credit. As exogenous policy shock, the capital market liberalization has no significant impact on the substitution financing relation between heterogeneous trade credits. This study reveals that trade credit is heterogeneous rather than homogeneous. The substitution financing effect also exists in trade credit inside, which expands the existing literature’s understanding of trade credit and the substitution financing theory’s connotation.