SOURCES OF FINANCING INNOVATION ACTIVITY OF AIRLINES

Abstract

Purpose. Providing theoretical and practical recommendations for selecting sources of financing innovation activity of airlines. Methodology of research. In research used the following methods: systematization – to summarize existing approaches to identify sources of funding innovation; modeling and prediction – to determine the possible causes and benefits of investing private equity and hedge funds in innovation activity of airlines. Findings. Possible sourcings innovative activity of airlines are analysed. Advantages and disadvantages of the use of own and borrowed funds. Advantages are analysed for the funds of hedge, private capital and for airlines from a mutual collaboration in the field of investing. Grounded necessity to maintain a high level of competitiveness through substantial fleet modernization Ukrainian airlines and increase the share of funding in total investments invested in the project for the development of additional services on board and on-line. Determined that the state regulation and direct financial support for innovation through public institutions does not replace market mechanisms and related financial institutions, as should have its own built purely on market principles, mechanisms and institutions to ensure investment in the innovation sector for profit. Originality. On the basis of international experience in financing innovation airlines proposed to search for foreign and domestic private equity and hedge funds. Practical value. The obtained research results can be used by domestic carriers to provide funding for innovation activity.