Member of the Star Alliance: Lufthansa can cooperate on pricing and schedules with United Air Lines Corp. (United; D/--/--), Scandinavian Airlines System (SAS), and Austrian Airlines; Lufthansa is a main market participant on transatlantic routes and the largest operator at Frankfurt am Main airport; Strong cash flow generation prospects; Very low level of encumbrances and high financeability of assets; and Medium-term liquidity sources from noncore asset disposals. Restructuring needs remain in the leisure division; Key U.S. partner United is under Chapter 11 creditor protection; and Further scope for market share and yield erosion in Germany and within Europe in particular. The ratings on Germany-based aviation group Deutsche Lufthansa AG reflect its strong market positions, its demonstrated ability to generate positive
