The study examines actual entry and exit dynamics in the German airline market in light of the
European liberalization process. For this purpose flight schedules data was used to derive
entry and exit statistics for a set of chosen inner-German routes over a period of thirteen
years. Data was analysed in cross-sectional and longitudinal manner while identifying different
entry waves and examining incumbent behaviour with respect to entry deterrence strategies.
Furthermore the market s concentration and structure was tracked to allow a conclusion with
respect to the market s contestability after liberalization. The results suggest the existence
of remaining structural barriers to entry and depict a rather unsatisfactory overall state of
the post liberalized market.
