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Lufthansa Buys Stake in JetBlueDecember 14, 2007 By: Travel Agent Central Contributor Travel Agent
Lufthansa is making a minority equity investment in JetBlue, acquiring shares at a price of $7.27 per share, or a total of approximately $300 million. This has Lufthansa gaining a seat on JetBlue?s board of directors. The agreement also allows both airlines to explore opportunities for cooperation that would benefit their customers, but noted that no specific areas of cooperation have yet been agreed upon. ?We are very pleased to become an investor in JetBlue,? said Lufthansa Group Chairman and Chief Executive Officer Wolfgang Mayrhuber. ?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.? (JM)