A STUDY ON THE POSSIBLE EFFECTS OF HORIZONTAL AGREEMENTS BETWEEN AIRLINES REGISTERED IN TURKEY: A MANAGERIAL PERSPECTIVE

The European Court of Justice declared that the nationality clauses in the open sky agreements among member states with the US that restrict international traffic rights to the national flag carriers of the countries concerned, are contrary to the Treaty of Rome. The Commission therefore desires to negotiate an agreement named Horizontal Agreement on behalf of the member states, in order to bring all existing bilateral air services agreements between member states and a given third country in line with the European Community Law. Turkey initiated this agreement and possibly this will affect the market conditions and the competition strategies of airlines registered in Turkey. Therefore, this study examines the changes that may result from the Horizontal Agreement, how these outcomes will have an affect on the competition strategies of airlines registered in Turkey. Some suggestions are as well presented.

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