Growth Strategies Case Study

Lufthansa Spreading its Wings in the US through JetBlue

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Abstract:
On 13th December 2007, Lufthansa announced its purchase of 19% stake worth $300 million in JetBlue Airways Corp. a low-cost carrier. The deal, without doubt, is a boost to JetBlue’s financial condition as it is operating on loss since the last few years. But on the other hand, analysts were skeptical about it and felt strange about the move on Lufthansa’s part. But few of them opined that Lufthansa might be thinking about the future growth keeping in view the ‘Open Skies’ Agreement that would be enacted from 30th March 2008.

Pedagogical Objectives:

• The US Airline Industry, its dynamics, operations, regulations and the competition in the industry
• Lufthansa’s expansion strategy in the US Airline Industry
• Analyse whether the purchase of stake from JetBlue will help in Lufthansa’s growth in the US.

Keywords : Lufthansa; JetBlue; Growth Strategies Case Study; US Airline Industry; Open Skies; Regulations; Deregulation; Expansion; Stake; J F K International Airport; Low Fares; Low-cost carrier; Tie-up; European airlines; Global aviation; Alliance

Contents : 
The US Airline Industry
The Increase in No. of Domestic Airline Passengers
Lufthansa in the US
JetBlue-Lufthansa Tie-up
Income Statement of JetBlue (In millions)