This paper presents a new approach based on simplified dynamic modelling of the blade and blade-to-blade interaction, which generally occurs due to flow structures with large extent such as tip clearance vortex. The model considers the blade-to-blade interaction as the primary cause of the local instability. By linearizing the blade-to-blade interaction, the stability of the system can be examined via eigenvalue analysis of the matrix differential system. Two-and three-bladed system are examined, and the results are qualitatively compared with the previous experimental results. Also, a graphical approach for investigating eigenvalues of general N-bladed system is given, and the behaviour of the system eigenvalues with varying model parameters are explained.