Lufthansa is member of the Star Alliance. The terms of its membership mean the airline can cooperate on pricing and schedules with airlines such as United Air Lines Corp. (UAL; D/--/--), SAS AB (publ), and Austrian Airlines. Lufthansa is a main market participant on transatlantic routes and the largest operator at Frankfurt airport. Very low level of encumbrances and high financeability of assets. Medium-term liquidity sources from noncore asset disposals. Capital market access. Highly competitive fares, especially on transatlantic routes and within Europe. Restructuring needs remain in leisure. Profitability prospects remain uncertain in catering. Key U.S.-based partner United Airlines is under Chapter 11. Further scope for erosion of market share and yield in Europe and Germany in particular. The ratings
