Aviation | 14.12.2007
Lufthansa to Buy Major Stake in US Discount Airline JetBlue
Lufthansa, Germany's largest airline, has announced that it will buy a 19-percent stake in US discount carrier JetBlue, an amount that keeps within limits the involvement of foreign partners.
The deal, which both companies confirmed on Thursday, Dec. 13, is to take effect in the first quarter of next year and must still be approved by authorities.
"This transaction represents the first significant investment by a European air carrier in a US point-to-point air carrier," the companies said in a statement.
The purchase price of $300 million (204 million euros) for 42 million common shares represents a 16-percent premium on Wednesday's per share closing price of $6.25.
"Our investment reflects the confidence we have in JetBlue's quality, growth potential and management team," Lufthansa's CEO Wolfgang Mayrhuber said.
New York-based JetBlue offers service to 53 US cities with up to 550 flights per day.
Lufthansa already partners with US Airways and United Airlines through the international Star Alliance. The German airline announced in October that it would pursue a major investment plan over the next several years and is looking into acquiring Iberia, a Spanish carrier with extensive service to Latin America.
