Lufthansa/JetBlue

[bleagle]

With continuing capacity increases in a slowing economy, a reckless competitive environment and $90/bbl. oil JB will go through the German's 300M like poop through a goose. This is not a knock on JB, I'm worried for the whole industry. The airlines are not designed to operate with fuel prices at these levels. They may survive this for awhile if the demand for travel stays super-high and there is enough pricing power but this economy is slowing as fuel prices are increasing...............that's a recipe for disaster in this industry where profit margins are paper-thin even in good times. The Germans are pretty smart people (except for that whole Nazi deal back in the day) and I'm surprised at their investment. They might as well flush the 300M down the toilet as invest it in the US domestic airline market right now; the results will probably be the same. Why didn't they just pursue a code-share/marketing relationship with JB instead of taking an equity stake?[/quote]

Well, Lufthansa just bought a seat on the JB board... getting ready for March 30 2008. Lufthansa is a Star Alliance partner with UAL and I believe that Lufthansa is getting ready to take FULL advantage of OPEN SKIES! The Star Alliance agreement allows foreign access to the main US gateways of Chicago, Los Angeles, Washington San Francisco and Denver. Now, Lufthansa can add other eastern markets like BOS, MCO (rumored JB base) to its business plans.

mE THINKS A SEAT ON THE BOARD RATHER THAN A CODE SHARE AGREEMENT GIVES lufthansa better control in market gain...
WHatever airline(s) can capitalize on the new global airline industry first... will rule the world! muhahahaha

 

[clickclickboom]

JB has solid revenue, the best domestic product in the usa and low costs.. Not to metion that they dont have to compete with jb indirectly like they do with ual dl etc...

I personally think it was a smart move by lh and i wouldnt be surprised to see some substantial growth at jb to give lh a significant route structure to feed.

The lh holdings made 30 billion dollars last year 300 mil is chump change

Hats off to JB mgmt for insulating themselves from the pathetic ego trips that manage the us legacies

 

[Capn Lucky]

Sing along....

3 German officers crossed the Rhein......

 

[DIAMONDDD]

I'm a little spooked about the whole deal. I remember what happend at the Springfield Nuclear Power plant when that German company bought it from C.M. Burns. That didn't work out so well.

 

[motch]

LH bought 19% and a seat on the board for one and only one reason. Open Skies.

Don't expect LH passengers to get off a LH flight and tranfer over to a JB flight unless you start a code share with them. And vice a versa... can a JB pax (say.. in RIC) buy a ticket to Germany via JB to a connecting LH flight?

Instead, I bet you see LH start flying into airports within the US that have service by JB. LH will utilize JB staff, gates and equipement to do their turns.
In the long run, it's probably cheaper to do this than lay all the ground work for new service.
I also believe they can't do this now utilizing their (Death) Star Alliance with UA due to Star rules.
(Wonder if they see a bleak future for UA?)

I'm also curious if LH will force JB to start a first/business class service INCLUDING senator lounges. Herm's are definitely into "full" service.

I don't see this hurting JB in either the short or the long run.
And who knows.. maybe they'll implement those good looking Black uniforms!

Always..

 

[AV80R]

ich bein ein airliner

That's funny!!! :laugh: