The ratings on Deutsche Lufthansa AG (Lufthansa), the Germany-based aviation group, reflect its position as: Europe's second-largest airline in terms of passenger traffic (81.4 billion revenue passenger kilometers in 2000); The world's second-largest carrier in air freight transport; and The world's leading civil aircraft maintenance and in-flight catering provider. Despite strong market positions and a moderate financial profile, the ratings are constrained by challenging volume and pricing pressures in most of Lufthansa's markets, as well as by increased debt levels associated with the acquisition of the remaining unowned shares in catering unit LSG Sky Chefs in 2001. Passenger airline activities generate about two-thirds of Lufthansa's total revenues. The group benefits from being by far the largest airline at Frankfurt airport
