The ratings on Germany-based aviation group Deutsche Lufthansa AG are supported by its dominant market positions, resilient operating performance, and healthy balance sheet structure. These strengths are partly offset by the high-risk and cyclical airline industry, the adverse effects of the current global financial conditions on corporate and consumer demand, and volatile fuel costs. At Sept. 30, 2008, Lufthansa reported total debt of about €3.5 billion and provisions for postretirement liabilities of €2.3 billion. Lufthansa is Europe's second-largest airline in terms of passenger traffic and is the largest provider of maintenance, repair, and overhaul (MRO) services in the region. The group generated revenues of €24.6 billion in the 12 months ended Sept. 30, 2008, deriving 83% of these revenues from
