Lufthansa acquires 19 percent stake in JetBlue

JetBlue Airways announced that it has reached an agreement with Lufthansa that will allow the German airline to acquire a 19 percent equity stake in JetBlue. The deal calls for Lufthansa to buy 42 million newly issued common shares at a cost of some $300 million, and provides that once the transaction is finished, probably early next year, Lufthansa can name one director to JetBlue’s board. JetBlue said the deal “represents the first significant investment by a European air carrier in a EU.S. point-to-point air carrier.” There was no immediate indication that the deal would lead to any operational links between the two airlines, although they said that they both “look forward to exploring potential opportunities for further cooperation for the benefit of their customers.” Lufthansa already cooperates closely with Star Alliance partner United Airlines in code-sharing and frequent flyer programs.