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Note
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Reference no. UVA-QA-0619
Authors: M Hild
Published by: Darden Business Publishing
Published in: 2004

Abstract

This note describes the competitive practices of Deutsche Lufthansa AG, the largest player in the German airline market, in response to challenges to its quasi-monopoly on domestic routes. Starting in 1988, European governments deregulated the European airline industry in preparation for a single European market. In April 1997, the final phase of this process gave private airlines owned by a majority of EU nationals the right to operate freely on any of the domestic routes within the member states of the European Economic Area. From that time on, Lufthansa faced a series of challenges by both private entrepreneurs and established airlines, including Deutsche BA, Go-fly, Eurowings, Germania and Preussag/TUI.

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Abstract

This note describes the competitive practices of Deutsche Lufthansa AG, the largest player in the German airline market, in response to challenges to its quasi-monopoly on domestic routes. Starting in 1988, European governments deregulated the European airline industry in preparation for a single European market. In April 1997, the final phase of this process gave private airlines owned by a majority of EU nationals the right to operate freely on any of the domestic routes within the member states of the European Economic Area. From that time on, Lufthansa faced a series of challenges by both private entrepreneurs and established airlines, including Deutsche BA, Go-fly, Eurowings, Germania and Preussag/TUI.

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