Originally Posted by
dan1431
I am not convinced that this is anything more than an investment by LH where they see a potential profit with little downside, the Dollar is weak and the Euro is strong at the moment.
As JetBlue stands it is not up to the level of a carrier that LH would want to work with. They do not offer FC/BC nor do they have an elite program or any way for that matter to recognize elites from other airlines. JetBlue does not even interline with any major US or foreign carrier, unless things change dramatically, I really do not see this as more than a potential gamble by LH.
Dan
thats exactly how I read the Tea Leaves myself.
B6 isnt joining *A nor M&M. Its simply an investment for now for LH. I dont think at this time B6 can offer LH passengers much in the way of connections to major cities that LH already doesnt serve Non-stop or via a Code-share with UA. But LH wants something just in case UA ends up elsewhere.
If LH starts now to funnel its passengers to B6 and not UA, that will start the swords a flying. So for now I dont see anything except for an Investment on LHs behalf. It wont be passive as it was announced that LH will have 1 rep on B6s Board.
As for the stk price, I think its gone as high as it will till B6 is out of the woods. After all LH got a new class of stk issued and paid $7.27 per sh, thats why B6 dropped from hitting $8.83 intra day the day the deal was annouced
BTW many a company purchased shares of another feeling the stk was very low and had no where else to go but Up and in the end were 100% Wrong. The lowest a stk can go is $0