Abstract
German air transport is actually governed by two fundamentally different market regimes which belong to different geographical areas of the world: While intra-EU air transport as well as some other markets are fully liberalized, most air transport links with the rest of the world are still subject to regulation by restrictive air service agreements. This paper examines the effects of the coexistence of different market regimes on the spatial distribution of international traffic flows, and draws some conclusions with respect to the appropriate design of future German air transport policy.
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