Shortly after noon yesterday, shares of JetBlue Airways
Oh, Mr. Market -- you magnificent maniac, you. Today's frenzy was out of all proportion to the significance of the actual deal the two airlines hammered out. Shares of JetBlue, which has long been pegged as a takeover target by legacy carrier Delta Air Lines
While there's plenty of room for speculation and debate regarding Lufthansa's strategic intent behind this investment, the 19% equity stake is strictly financial. Yes, Lufthansa gets a seat at the table in the boardroom. But aside from that, it's formally just an investor like you or me -- nothing more.
Of course, that's a boring answer, and the analysts on the afternoon conference call did their best to get a little "color." Folks from Goldman Sachs
Perhaps the most notable point made by a questioner was that JetBlue has some primo real estate, in the form of a new terminal opening at JFK Airport in 2008. A popular theory suggests that Lufthansa might seek to get in on that Terminal 5 turf. It's a pretty convincing thought, particularly in light of recent talk of flight rationing in New York City, but I'm afraid we're just going to have to sit back, stretch our legs, and wait to see what unfolds.