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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:

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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