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Author: SpiffyGuyJoel Three stars, 500 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 919  
Subject: Re: Lufthansa pays $300M for JetBlue stake Date: 12/14/2007 1:26 PM
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Germany's biggest airline, Deutsche Lufthansa AG, said Thursday it is paying $300 million for a 19 percent stake in JetBlue Airways Corp.

The US to Europe market is about to be deregulated with the Open Skies Agreement: http://en.wikipedia.org/wiki/Open_Skies_Agreement

Lufthansa has a need to focus on feed in to its international routes more than ever, both to keep its current routes well defended and to expand to future routes. Jetblue has a huge amount of traffic on domestic routes that fly to international airports on the East Coast, especially JFK, and they are growing that at a steady clip.

With a 19% stake, along with the board seat and voting rights that come with that, Lufthansa is in a much better negotiating position on the terms of a code-share agreement. Expect such an agreement to come very soon. That's what this is about.
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