Lufthansa Purchases 19-Percent Stake In JetBlue | Aero-News Network
Aero-News Network
RSS icon RSS feed
podcast icon MP3 podcast
Subscribe Aero-News e-mail Newsletter Subscribe

Airborne Unlimited -- Most Recent Daily Episodes

Episode Date

Airborne-Monday

Airborne-Tuesday

Airborne-Wednesday Airborne-Thursday

Airborne-Friday

Airborne On YouTube

Airborne-Unlimited-07.07.25

Airborne-NextGen-07.08.25

AirborneUnlimited-07.09.25

Airborne-FlightTraining-07.10.25

AirborneUnlimited-07.11.25

Fri, Dec 14, 2007

Lufthansa Purchases 19-Percent Stake In JetBlue

$300 Million Deal Is Carrier's First Move Into US Market

One of American's most popular low-cost airlines will now carry a bit of German flavor. On Thursday, Deutsche Lufthansa AG announced it would pay $300 million for a 19-percent stake in JetBlue Airways Corp. -- the first time Lufthansa has made a move into the US airline industry.

The deal gives JetBlue a welcome infusion of cash, reports The Associated Press, and gives Lufthansa control over a potential takeover down the line.

JetBlue CEO Dave Barger called the deal a "significant endorsement of JetBlue's franchise from one of the most respected leaders in global aviation," adding the deal
"reaffirms our belief in JetBlue's disciplined growth plan and will also improve our balance sheet and give us greater financial flexibility as we move into 2008."

For economists, the deal is further proof European companies are looking towards the US for investment... especially as the Euro continues to strengthen against the US dollar, giving those entities additional spending power in the US market.

Lufthansa plans to acquire roughly 42 million newly-issued shares in JetBlue, for $7.27 per share -- a 16 percent premium to Wednesday's closing price on Wall Street. The deal will also give Lufthansa a seat on JetBlue's board of directors, and lays the groundwork for what Lufthansa termed "an operation cooperation."

If that sounds vaguely ominous, Lufthansa CEO Wolfgang Mayrhuber hopes his statement Thursday will allay some fears.

"We are very pleased to become an investor in JetBlue," Mayrhuber said. "Our investment reflects the confidence we have in JetBlue's quality, growth potential and management team. This investment presents Lufthansa with a compelling opportunity to invest in the U.S. point-to-point carrier market as the industry continues to evolve. The transaction links two airlines with international reputations for quality, innovation and a service culture."

Lufthansa's stake in JetBlue falls under the 25 percent level of foreign ownership where the Department of Transportation gets nervous, though as mentioned before it's possible the carrier would try to add to its stake down the line, and test the DOT's restrictions.

Calyon Securities analyst Ray Neidl said the deal will created more options for both carriers, though "it's probably better for Lufthansa than JetBlue," he added.

FMI: www.lufthansa.com, www.jetblue.com

Advertisement

More News

NTSB Final Report: Aviat A1

Airplane Bounced About 3 Ft Then Touched Back Down And Then, With No Brakes Applied, The Airplane Began Veering To The Left Analysis: The pilot entered the airport traffic pattern >[...]

ANN's Daily Aero-Linx (07.08.25)

Aero Linx: British Microlight Aircraft Association (BMAA) The primary focus within all aviation activity is SAFETY. In all aspects of our sport SAFETY must come first, whether it b>[...]

Classic Aero-TV: Fly Corvair’s Reliable Engine Alternative

From SnF25 (YouTube Edition): William Wynne Builds Practical Aircraft Engines on the Corvair Platform Seeking an affordable alternative to the traditional aircraft engine options, >[...]

ANN FAQ: Contributing To Aero-TV

How To Get A Story On Aero-TV News/Feature Programming How do I submit a story idea or lead to Aero-TV? If you would like to submit a story idea or lead, please contact Jim Campbel>[...]

Classic Aero-TV: CiES Fuel-Quantity and e-Throttle Systems Praised

From 2023 (YouTube Edition): Bridge of CiES CiES Inc. is a Bend, Oregon-based designer and manufacturer of modular embedded aircraft systems and sensors. The company’s fuel-l>[...]

blog comments powered by Disqus



Advertisement

Advertisement

Podcasts

Advertisement

© 2007 - 2025 Web Development & Design by Pauli Systems, LC