Of course you should think about whether the domestic market is usable or not. I've had a couple of Ukranian airlines myself and have to say that I started them with domestic routes. There's enough demand to have a (not too big, obviously) decent network.
I think it is a good idea to start with domestic flights in countries where it is possible. You can build up from there as there is a big chance that you won't be facing competition in that particular market.
It depends in which country your plaining. It's a good strategy for Japan (for example), but it won't work for Ukraine where straight away you should go for internation routes.
Only 8 airports in Ukraine are feasible to operate from, and most of them require a DHC-6 or smaller. Regional is a tough industry in Ukraine with just 8 possible destinations.
Why to go for domestic flights if you can have a good yield European routes?
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