Scientific paper ID 818 : 2013/3

We are witnessing hard times for regional air carriers both in Europe and North America. They are rethinking their business strategy. Regional air carriers have to decide whether they could exist as independent players in the market or they should seek close cooperation with a major airline, whose long-haul flights they should feed. Both strategies have advantages and disadvantages. Given the current circumstances, the financial integration is much less important than the network integration. Under the conditions of increasing competition on the part of low cost carriers, growing costs and unhealthy economic environment in Europe Bulgarian airlines also have to decide on the most suitable strategy for their operation in the market.