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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