Deutsche Lufthansa AG and JetBlue Airways Corporation completed their stock purchase agreement transaction in which Lufthansa now holds a 19 percent stake in JetBlue. With the conclusion of the financial transaction, Lufthansa and JetBlue will begin exploring innovative commercial arrangements designed to benefit both airlines and their customers.

Lufthansa purchased in a private placement approximately 42 million newly issued common shares of JetBlue, or 19% of JetBlue’s equity after giving effect to the issuance. Lufthansa was acquiring the shares at a price of $7.27 per share, or a total of approximately $300 million, representing a 16% premium to a closing price of $6.25.

“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 Luf-thansa 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.”

“We welcome this significant endorsement of JetBlue’s franchise from one of the most re-spected leaders in global aviation,” said Dave Barger, JetBlue's CEO. “The agreement reaf-firms 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.”

Both airlines also look forward to exploring potential opportunities for further cooperation for the benefit of their customers. No specific areas of potential cooperation have been agreed.